The European Court of Justice (CJEU) has issued a ruling stating that antitrust authorities overseeing companies like Meta Platforms, the owner of Facebook, Instagram, and WhatsApp, have the right to evaluate privacy breaches. The decision potentially grants more flexibility to antitrust regulators in investigating Big Tech firms.
Understanding the CJEU Ruling: Antitrust Agencies and Data Protection Concerns
The case stemmed from a 2019 order by the German cartel office, which instructed Meta to cease collecting users’ data without their consent, deeming it an abuse of market power. Meta challenged the order, leading a German court to seek guidance from the CJEU.
The CJEU ruling clarifies whether antitrust agencies exceeded their jurisdiction by utilizing antitrust powers to address data protection concerns, typically handled by national data protection authorities.
In response to the ruling, a Meta spokesperson stated that they are evaluating the decision and will provide further comments later.
According to the CJEU judges, during antitrust investigations, it might be necessary for competition authorities to examine whether a company’s conduct complies with regulations beyond those related to competition law. However, the court emphasized that antitrust regulators must take into account any decisions or investigations carried out by relevant supervisory authorities concerning data protection.
The German cartel office welcomed the ruling, with its head, Andreas Mundt, highlighting the significance of data in establishing market power. Mundt stated that the use of consumers’ highly personal data by large internet companies can also qualify as an abuse under antitrust law.
Legal experts, such as Thomas Graf from Cleary Gottlieb law firm, expressed caution regarding the extent to which antitrust authorities would delve into privacy law. Graf noted that demonstrating the relevance of privacy law to antitrust and coordinating with GDPR authorities would be necessary.
The ruling received support from the European Consumer Organisation (BEUC), emphasizing the need for authorities to consider data protection in today’s complex digital economy.
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(Via)
