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
      Starlink wait set to drag on as Icasa flags legal hurdle

      Starlink wait set to drag on as Icasa flags legal hurdle

      13 May 2026
      Malatsi opens door to 'some' partial privatisations of SOEs - communications minister Solly Malatsi

      Malatsi opens door to ‘some’ partial privatisations of SOEs

      13 May 2026
      Sam Altman denies betraying Elon Musk. Shelby Tauber/Reuters

      Sam Altman denies betraying Elon Musk

      13 May 2026
      Naked Insurance launches native app in ChatGPT - Alex Thomson

      Naked Insurance launches native app in ChatGPT

      13 May 2026
      Canal+ firms up 3 June JSE listing

      Canal+ firms up 3 June JSE listing

      13 May 2026
    • World
      Pop star sues Samsung for $15-million - Dua Lipa

      Pop star sues Samsung for $15-million

      11 May 2026
      OpenAI's new audio APIs aim for conversational voice agents

      OpenAI’s new audio APIs aim for conversational voice agents

      8 May 2026
      'It was my idea': Musk claims paternity of OpenAI - Elon Musk

      ‘It was my idea’: Musk claims paternity of OpenAI

      29 April 2026
      Pivotal week for US tech stocks

      Pivotal week for US tech stocks

      28 April 2026
      Sam Altman denies betraying Elon Musk. Shelby Tauber/Reuters

      Worries over OpenAI’s growth as Anthropic gains ground

      28 April 2026
    • In-depth
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      Datatec is firing on all cylinders - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
    • TCS
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
    • Opinion
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      R230-million in the bag for Endeavor's third Harvest Fund - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • 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

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


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

    Related Posts

    Hyperscalers ate my next computer

    Hyperscalers ate my next computer

    8 May 2026
    Alphabet closes in on Nvidia as world's most valuable company

    Alphabet closes in on Nvidia as world’s most valuable company

    6 May 2026
    More details about Apple's AI plans emerge

    More details about Apple’s AI plans emerge

    6 May 2026
    Company News
    In crypto, trust is the new currency - Binance South Africa's Sam Mkhize

    In crypto, trust is the new currency

    13 May 2026
    Don't miss the Telviva Tech Insights webinar

    Don’t miss the Telviva Tech Insights webinar

    13 May 2026

    Don’t miss the Pan African DataCentres Exhibition & Conference

    13 May 2026
    Opinion
    Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

    Free calls, dead voice and Shameel Joosub’s Spanish ghost

    22 April 2026
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026

    Subscribe to Updates

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

    Latest Posts
    Starlink wait set to drag on as Icasa flags legal hurdle

    Starlink wait set to drag on as Icasa flags legal hurdle

    13 May 2026
    Malatsi opens door to 'some' partial privatisations of SOEs - communications minister Solly Malatsi

    Malatsi opens door to ‘some’ partial privatisations of SOEs

    13 May 2026
    Sam Altman denies betraying Elon Musk. Shelby Tauber/Reuters

    Sam Altman denies betraying Elon Musk

    13 May 2026
    Naked Insurance launches native app in ChatGPT - Alex Thomson

    Naked Insurance launches native app in ChatGPT

    13 May 2026
    © 2009 - 2026 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}