Social Media | Facebook under fire as German antitrust cops target ad model

Facebook Inc. is on a collision course with one of Europe’s most powerful regulators as Germany’s Federal Cartel Office attacked the way the social network giant scoops up information on how users surf to drive its advertising revenue.

Users are unaware that Facebook – seen as Germany’s dominant social network – gathers data on how they visit other websites and don’t appear to consent to how that data is used, the Federal Cartel Office, or Bundeskartellamt, said in an email statement.

People only have the choice to accept the entire package or stop using the network, it said, attacking “inappropriate” terms of service widely used by internet sites. The FCO says it isn’t investigating how Facebook collects information on how its users act on the social network, only on their internet habits outside of Facebook’s walls.

Facebook generates vast revenues from serving targeted advertising to users it knows well. German regulators may seek changes from the company, saying Facebook could now justify its conduct or “offer possible solutions” to address concerns that its data collection and use may be an abuse of its market power.

A final decision won’t come before mid-2018 and may see the FCO close the case, accept commitments from Facebook or issue an order for Facebook to cease certain behavior. Bloomberg