Meta Loses Appeal in Germany against antitrust regulator’s Order

The European Union’s highest court backed a ruling on 4th July by German antitrust regulators that Meta had exploited its position in social media, casting doubt on Meta’s capacity to collect user data in order to offer personalized advertisements.

This will prevent Meta from combining user data from its various platforms, such as Facebook, Instagram, and WhatsApp, as well as from external websites and apps unless it receives explicit consent from users.

The judgment undermines Meta’s economic strategy, which depends on the sale of customized advertisements based on the enormous amounts of data that Meta collects about its users when they use Meta services and explore the internet more broadly.

The verdict gives new impetus to the proponents of stricter regulation of the biggest technological companies in the world. Although the decision only affects Meta services in Germany, other European Union antitrust regulators are likely to take note of it. In the upcoming months, a new European Union antitrust law known as the Digital Markets Act will come into force, giving authorities greater authority to promote competition in the tech industry.