Italian Competition Watchdog Launches Proceedings Against Facebook

Facebook CEO Mark Zuckerberg arrives at the European Parliament, prior to his audition on
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Italy’s competition watchdog has reportedly launched proceedings against social media giant Facebook for non-compliance with previous requests relating to improper commercial practices in the site’s treatment of user data.

Reuters reports that Italy’s competition watchdog has launched legal proceedings against Silicon Valley social media giant Facebook, alleging that the firm has not complied with previous requests the watchdog made relating to improper commercial practices in how Facebook treats user data.

The legal proceedings could result in a fine of up to 5 million euros, approximately $5.6 million, the watchdog said in a statement. The watchdog ruled in November 2018 that Facebook has not properly informed users of the collection and use of their data for commercial reasons.

The watchdog fined Facebook 5 million euros and asked the Silicon Valley giant to publish a statement on its homepage in Italy and on the profile page in the Facebook app of each Italian user. The watchdog is now claiming that Facebook has not complied with either request.

Facebook has faced intense scrutiny from European regulators in recent years, in February of 2019 Breitbart News reported on Germany’s demands of Facebook writing:

According to Business Insider, the regulator demanded that Facebook “change its terms and conditions so that people can explicitly stop it from hoarding data from different sources, including Facebook-owned apps like WhatsApp and Instagram, as well as third-party websites with embedded tools, such as ‘like’ or ‘share’ buttons.”

“The regulator says bundling users’ data together from different sources without explicit consent results in a lack of control,” Business Insider reported. “It also said the extent to which the social network amasses data from elsewhere is an abuse of its dominant market position.”

The President of the Bundeskartellamt, Andreas Mundt, declared in a statement that they “are carrying out what can be seen as an internal divestiture of Facebook’s data.”

“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,” Mundt proclaimed. “The combination of data sources substantially contributed to the fact that Facebook was able to build a unique database for each individual user and thus to gain market power. 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. Voluntary consent means that the use of Facebook’s services must not be subject to the users’ consent to their data being collected and combined in this way,” he continued. “If users do not consent, Facebook may not exclude them from its services and must refrain from collecting and merging data from different sources.”

Mundt added that currently, “The only choice the user has is either to accept the comprehensive combination of data or to refrain from using the social network.”

Breitbart News also reported in August that the European Commission sent out a questionnaire to a number of parties involved with Facebook’s new digital currency, Libra. The Commission sent the letters to provide feedback on the questionnaire; now some are beginning to think that the E.U. could be preparing for a formal investigation into the digital currency.

Individuals with knowledge of the situation stated that the main focus of the E.U. competition enforcer’s investigation would likely be the use of consumer data. Facebook is working with 28 partners in a Geneva-based entity called the Libra Association which will govern and regulate the new cryptocurrency.

The questionnaire from the Commission stated: “The Commission is in particular concerned about the possible competition restrictions that may result from the Association, especially with regard to information that will be exchanged and the use of consumer data.” The Commission can fine companies up to 10 percent of their global turnover for breaching EU antitrust rules and order them to change business practices but declined to comment on the questionnaire or the Libra currency.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or email him at lnolan@breitbart.com

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