Facebook‘s “free” Status under Scrutiny: German Court Seeks EU Ruling
Karlsruhe, Germany – The question of whether Facebook truly operates as a ”free” service is now before the European Court of Justice (ECJ), following a decision by Germany’s Federal Court of Justice (BGH) in Karlsruhe on Monday. The BGH has requested the ECJ to clarify if the concept of “costs” extends to the disclosure of personal data and its subsequent use for commercial purposes.
The case stems from a lawsuit brought by the German consumer protection group, Bundesverband (VZBV), which argues that Facebook’s claim of being “free of charge” is misleading, as users effectively pay with their personal data.Meta, Facebook’s parent company, contends that “costs” refer solely to monetary payments. The BGH acknowledged the ambiguity of EU law regarding this interpretation, prompting the referral to the ECJ for a definitive ruling (Case Az. I ZR 11/20).
This legal challenge has broader implications for data privacy and the business models of numerous online platforms. A ruling in favor of the VZBV could force companies to more transparently acknowledge the “cost” of data collection and usage, possibly reshaping how services are offered and perceived by consumers across the European Union. The ECJ’s decision will establish a precedent for similar cases and influence future regulations surrounding data privacy.
Separately, the BGH also sought clarification from the ECJ regarding the protection of IP addresses when utilizing “Google Fonts” – a free directory of over 1500 fonts offered by Google to website operators.The court is seeking guidance on the conditions under which an IP address constitutes protected personal data, especially as these addresses are frequently transmitted to Google in the USA (Case Az. VI ZR 258/24). This inquiry highlights growing concerns about data transfer and privacy implications associated with commonly used web technologies.
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