EU Antitrust Watchdog Can Intervene For Privacy Breach Checks: New Precedent In User Data Safeguards?

The European Union (EU) has indicated that it can intervene and take actions that are in the best interest of the citizens and their data. Antitrust authorities overseeing big tech companies such as Meta, Google, Microsoft, and others, could soon have the authority to assess privacy breaches.

After Meta challenged a German cartel office, the Court of Justice of the European Union (CJEU) ruled that the EU can step in to ensure there are adequate safeguards to protect user data and privacy.

Antitrust Watchdog Can Assess Privacy Breaches, EU Court Tells Meta

Europe's top court has ruled that antitrust authorities overseeing tech companies are entitled to also assess privacy breaches. The ruling was a response to Meta challenging a German cartel office.

Back in 2019, the German cartel office had ordered Meta to stop collecting users' data without their consent. The office had noted the practice was an abuse of market power.

Meta challenged this order in the Luxembourg-based Court of Justice of the European Union (CJEU). The apex EU court looked at whether the German antitrust agency overstepped its authority.

Meta, the owner of Facebook, Instagram, and WhatsApp, challenged the finding, prompting a German court to seek advice from the CJEU. Meta had essentially argued that the German cartel office doesn't have the authority to use its antitrust power to address data protection concerns.

The CJEU has apparently sided with the German cartel office stating it didn't overstep. In other words, apart from national data protection authorities, even these authorities can take action against potential data breaches to safeguard user data and privacy.

Regarding antitrust investigations, the CJEU judges noted that "it may be necessary for the competition authority of the member state concerned also to examine whether that undertaking's conduct complies with rules other than those relating to competition law."

Data Is A Decisive Factor Reaffirms CJEU

Nearly every tech giant, be it Meta, Microsoft, Google, or others, values users' data. In other words, user data has become digital gold.

"Data is a decisive factor in establishing market power. The use of the very personal data of consumers by the large internet companies can also be abusive under antitrust law," Andreas Mundt said. He is the head of the German cartel office. The EU apex court has essentially upheld the intention behind the action of the German office.

Realizing there could be potential exploitation, the EU's General Data Protection Regulation (GDPR) was enacted. It is a privacy and security law that imposes obligations on all organizations which target or collect data related to people in the EU.

Perhaps the primary concern of Meta, and as an extension for all tech giants, is that antitrust authorities might gradually also indirectly become GDPR regulators. If that happens, tech companies may face further complications in complying with regulations.