8/29/2018

GERMAN ACTION AGAINST FACEBOOK

BONN : Germany's antitrust watchdog expects to take first steps this year in its probe against  Facebook after finding that the social media giant abused its market dominance to gather data on people without their knowledge.

The probe is being closely watched in Europe amid mounting concerns over leaks of data on tens of millions of Facebook users, as well as the extensive use of  targeted ads by foreign powers seeking to influence elections in the United States.

The Federal Cartel office objects in particular to how Facebook acquires data on people from third-party apps - including its own WhatsApp and Instagram services - and its online tracking of people who aren't even members.

''We are conscious that this should, and must, go quickly,'' cartel office President Andreas Mundt told a news conference on Monday adding that he hoped to take ''first steps'' this year. He declined to elaborate.

The German probe is not expected to end in fines for Facebook, in contrast to European Union  probes into google that have ended in  multi-billion-dollar penalties, most recently over the preinstallation of its apps on Android smartphones.

Separately,Mundt confirmed comments he made in a newspaper interview earlier this month, that he may launch an investigation into the e-commerce industry  under new powers that enable the cartel office to launch sector-wide probes.

The focus would be on so-called ''hybrid'' platforms such as U.S. e-commerce giant Amazon that sell their own products and services, but that also host  third-party traders.

''Our question is : what is the relationship between the platform, which itself is a very powerful trader, and the traders who use the platform?'' said Mundt. [Reuters].

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