Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Koos Bekker sells R2.5-billion in Naspers and Prosus shares

      Koos Bekker sells R2.5-billion in Naspers and Prosus shares

      23 December 2025
      Tribunal clears Vumatel's takeover of Herotel - with conditions

      Tribunal clears Vumatel’s takeover of Herotel – with conditions

      23 December 2025
      Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

      Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

      23 December 2025
      Netflix launches Afcon football show, hinting at bigger sports ambitions

      Netflix launches Afcon football show, hinting at bigger sports ambitions

      23 December 2025
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • World
      Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

      Trump space order puts the moon back at centre of US, China rivalry

      19 December 2025
      Warner Bros slams the door on Paramount

      Warner Bros slams the door on Paramount

      17 December 2025
      X moves to block bid to revive Twitter brand

      X moves to block bid to revive Twitter brand

      17 December 2025
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
    • In-depth
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » World » Facebook may be next in EU’s crosshairs

    Facebook may be next in EU’s crosshairs

    By Agency Staff3 July 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    [dropcap]F[/dropcap]acebook’s small print may be the next big thing in European antitrust as watchdogs home in on how the world’s biggest social network collects information from users that helps generate vast advertising revenues.

    Germany’s Federal Cartel Office is examining whether Facebook essentially takes advantage of its popularity to bully users into agreeing to terms and conditions they might not understand. The details that users provide help generate the targeted ads that make the company so rich.

    In the eyes of the Cartel Office, Facebook is “extorting” information from its users, said Frederik Wiemer, a lawyer at Heuking Kuehn Lueer Wojtek in Hamburg. “Whoever doesn’t agree to the data use gets locked out of the social network community,” he said. “The fear of social isolation is exploited to get access to the complete surfing activities of users.”

    Whoever doesn’t agree to the data use gets locked out of the social network community. The fear of social isolation is exploited to get access to the complete surfing activities of users.

    The European Union’s antitrust arm has grabbed the limelight with eye-popping penalties for US technology firms it found fell foul of anticompetitive behaviour. Last year, it ordered Apple to pay €13bn in back taxes and last week it fined Google €2.4bn for allegedly skewing search results in its favour.

    But lawyers say the Cartel Office’s probe is testing the boundaries of antitrust law — with ramifications far beyond Germany and Facebook as all kinds of powerful technology firms seek to find new ways to cash in on their trove of customer information.

    It’s “more radical” than the EU’s Google case “because it asserts that privacy concerns can be antitrust concerns” and that consumers have a broader role than buyers of services in an economy, said Alec Burnside, an attorney at Dechert in Brussels.

    Two billion users

    The German probe comes as Facebook, which now has two billion members and made more than US$27bn in revenue last year, confronts heightened regulatory scrutiny in Europe. It’s being investigated by numerous privacy authorities over its plans to merge data with the WhatsApp messenger application, faces a court battle over data transfers across the Atlantic and was fined in May for misleading the EU in a merger review of the WhatsApp deal.

    Andreas Mundt, the Cartel Office’s president, said last week he’s “eager to present first results” of the Facebook investigation this year. Like the EU’s Google investigation, he said the Facebook case tackles “central questions ensuring competition in the digital world in the future”.

    Facebook declined to comment on the possible outcome. The company has insisted it operates within applicable law and that it would cooperate with regulators.

    Personal data is a hot topic in Europe where Internet companies have been criticised by privacy agencies for how they gather and use people’s details. But in antitrust, it’s still a contentious issue that the European Commission’s competition authority in Brussels has largely so far side-stepped, saying its job is to focus on companies’ economic power.

    It may be difficult to show that Facebook is really misusing its market position

    That could be changing should the German regulator embolden other authorities such as the EU to act. While the Google case focused on how the company abused its power to thwart smaller rivals, last week’s decision also revealed how the EU is starting to dig deeper into what technology companies do with the personal information they gather from their users.

    The commission pointed to how data collection creates and cements the power of technology giants. Sites such as Google that attract huge numbers of users also draw in advertisers who want to grab those eyeballs, generating profits that can be used to pull in even more users, the EU authority said. The data Google gathers also means it offers better results, which makes it even harder for competitors.

    Novelty

    Some lawyers say the Facebook case is so novel in its approach to antitrust that the Cartel Office should have left the question of whether the company abuses users’ data to privacy regulators. Those watchdogs — once relatively toothless — will be empowered next year when tougher EU data privacy rules take effect, allowing them to levy fines of as much as 4% of global annual sales.

    In these complicated questions where you enter new territory, it makes sense to first ban a certain action without imposing fines

    “It may be difficult to show that Facebook is really misusing its market position” under antitrust law, said Daniel Wiedmann, an antitrust attorney at P+P Poellath + Partners, in Frankfurt. “It’s likely users accept the terms not because Facebook is the dominant power on that market but because they’re reflecting their preferences.”

    Ironically, Facebook may have less to fear financially from a Cartel Office probe as, unlike Google, it may not be fined. The current terms of the investigation rule out a financial penalty even if it’s found to breach antitrust rules. At worst, Facebook faces an order to change how it operates.

    “That’s the right choice,” said Wiemer. “In these complicated questions where you enter new territory, it makes sense to first ban a certain action without imposing fines.”

    Facebook’s vast wealth may show, like Google, that few fines would be big enough to do it real harm. A warning to the most extensive social network that requires it to change how it hooks in users and targets advertising could make a bigger dent in the long run than any fine.  — Reported by Aoife White and Karin Matussek, with assistance from Stephanie Bodoni and Sarah Frier, (c) 2017 Bloomberg LP



    Facebook Google top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleChina cracks down on VPNs
    Next Article Big shake-up at Microsoft

    Related Posts

    TechCentral's International Newsmakers of 2025

    TechCentral’s International Newsmakers of 2025

    17 December 2025
    OpenAI launches GPT-5.2 after 'code red' push to counter Google. Shelby Tauber/Reuters

    OpenAI launches GPT-5.2 after ‘code red’ push to counter Google

    12 December 2025
    Australia has banned kids from social media. Should South Africa follow suit?

    Australia has banned kids from social media. Should South Africa follow suit?

    11 December 2025
    Company News
    Why TechCentral is the most powerful platform for reaching IT decision makers

    Why TechCentral is the most powerful platform for reaching IT decision makers

    17 December 2025
    Business trends to watch in 2026 - Domains.co.za

    Business trends to watch in 2026

    17 December 2025
    MTN Zambia launches world's first 4G cloud smartphone solution - Huawei

    MTN Zambia launches world’s first 4G cloud smartphone solution

    17 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Koos Bekker sells R2.5-billion in Naspers and Prosus shares

    Koos Bekker sells R2.5-billion in Naspers and Prosus shares

    23 December 2025
    Tribunal clears Vumatel's takeover of Herotel - with conditions

    Tribunal clears Vumatel’s takeover of Herotel – with conditions

    23 December 2025
    Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

    Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

    23 December 2025
    Netflix launches Afcon football show, hinting at bigger sports ambitions

    Netflix launches Afcon football show, hinting at bigger sports ambitions

    23 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}