Germany has been investigating Facebook data-gathering practices since March 2016.
And after a lengthy probe into the company's data gathering strategy, the country's Federal Cartel Office (Bundeskartellamt) announced that it prohibits Facebook from gathering data on users from third-party websites (using tracking pixels and social plugins) without their consent.
Germany’s competition watchdog also bans the social network giant from combining data from users across its own suite of social platforms
The Bundeskartellamt said that any data processing must be voluntary. The company must therefore “adapt its terms of service and data processing accordingly," it warns.
The regulator invoked the GDPR, stating that Facebook had no credible purpose for blending data from multiple sources
"Dominant companies may not use exploitative practices to the detriment of the opposite side of the market, i.e. in this case the consumers who use Facebook. This applies above all if the exploitative practice also impedes competitors that are not able to amass such a treasure trove of data."
"This approach based on competition law is not a new one, but corresponds to the case-law of the Federal Court of Justice under which not only excessive prices, but also inappropriate contractual terms and conditions constitute exploitative abuse (so-called exploitative business terms)."
Andreas Mundt, president of the Bundeskartellamt, added that: "In future, Facebook will no longer be allowed to force its users to agree to the practically unrestricted collection and assigning of non-Facebook data to their Facebook user accounts."
Facebook's data gathering strategy is so extensive, that it contributed to the fact that Facebook can build a sophisticated and unique database for each individuals, making it gain market power over others.
"In future, consumers can prevent Facebook from unrestrictedly collecting and using their data. The previous practice of combining all data in a Facebook user account, practically without any restriction, will now be subject to the voluntary consent given by the users," Mundt continued.
Here, Facebook is urged to make users voluntarily opt to its data gathering strategy.
If users don't agree, Facebook must exclude them from its data gathering strategy, and the company should also refrain from collecting and merging their data from different sources.
The German watchdog also said that if Facebook intends to continue collecting data from outside its own social network to combine that with users’ accounts without consent, then it "must be substantially restricted."
Facebook appeals, and has a month to challenge the decision and develop proposals for possible solutions, before the rules come into force in Germany.
