Antitrust challenge to Facebook's ‘superprofiling' finally wraps in Germany — with Meta agreeing to data limits

Core Summary - The German Federal Cartel Office (FCO) concluded a multi-year antitrust case against Meta, resulting in significant changes to how Meta handles user data, particularly in Germany [1][2] - Meta dropped its appeal against the FCO's order, making the regulator's decision final [1] - The FCO's victory marks a significant step in curbing Meta's privacy-invasive practices, though broader regional battles against its business model continue [6][8] Changes to Meta's Data Handling - Meta introduced an Accounts Center allowing users to keep data collected from Facebook and Instagram separate, preventing combined ad profiling [2] - A new cookie setting enables users to decide whether their data can be combined with information collected from third-party websites and apps [2] - A "special exception" for Facebook Login allows users to opt out of data combination without losing access to the service [2] - Meta agreed to limit the combination of Facebook and Instagram users' data for security purposes, storing and processing such data only temporarily [2] - Meta pledged to provide concise customer information about data combination settings, including prominent notifications and direct links to consent options [2] Implementation and Scope - Some changes, such as the Accounts Center, have already been implemented, while others are expected to roll out in the coming weeks [3] - The FCO confirmed that while the decision is binding only for Germany, some measures, like the Accounts Center and Facebook Login exception, have been applied across Europe [4] Regulatory Context and Broader Implications - The FCO's case highlights the intersection of competition and privacy, framing Meta's data practices as an "exploitative abuse" of its monopoly position [1][10] - The case has influenced broader regulatory actions, including the EU's Digital Markets Act (DMA), which restricts data combination across services without valid user consent [8][9] - Meta's shift to a "pay or consent" model in Europe, requiring users to agree to ad tracking or pay for an ad-free service, has drawn scrutiny from data protection authorities and the European Commission [6][7][8] Industry Impact - The FCO's case has set a precedent for challenging surveillance-based ad business models, with potential implications for other tech giants [7][8] - The case underscores the growing regulatory focus on ensuring user consent is freely given and data processing is not excessive, as outlined in the GDPR and DMA [9][10] Future Outlook - The European Commission's ongoing investigation under the DMA could further restrict Meta's data practices, particularly its "pay or consent" model [8][9] - The FCO's success in curbing Meta's data practices may inspire similar actions by other regulators, amplifying pressure on the company's business model [8][10]