Questions are not only being raised about Facebook in the Netherlands. The German competition authority has given Facebook its views following a preliminary investigation into possible abuse of power by Facebook. The regulator's main objection is that Facebook is abusing its market dominance by linking the use of its services to data collection. Data is collected from individuals visiting websites and included by Facebook in its customer profiles. Data can already be collected when visiting a website with a Facebook button. Visitors are not informed about this.
Andreas Mundt, president of the competition authority, said, "we are very concerned about Facebook collecting data outside its social network, and adding the data to someone's Facebook account. Through APIs, data is shared with Facebook even when someone visits another website that has a Facebook button on it. Visitors don't realize this. And we are not convinced that users have given permission for tracking by Facebook and the link to their profile. The extent and form of data collection violates principles of European data protection principles."
Market power, according to the regulator, lies in the fact that Facebook's business model prevents individuals from switching to another social network. Without acceptance of all terms and conditions, the service cannot be used.
Andreas Mundt notes that there are several sides to the issue. On the one hand, Facebook offers free services to individuals, on the other hand attractive opportunities for advertisers. That attractiveness is based on the personal profiles that allow targeted advertising. In this interplay "Facebook will have to comply with laws and regulations. Competition rules prohibit a company from abusing its marketplace."
By publishing the view, the authority gives Facebook the opportunity to respond. This can be done by refuting the authority's arguments or coming up with other solutions.
