The internet is global. Users of social media appreciate the global reach of the internet since they can connect with untold numbers of people. Social media companies such as Facebook positively do benefit from the worldwide range of the internet. Unfortunately, Facebook — along with other companies — discoveries more than one country’s government appears to lose patience with Facebook’s data collection procedures. On the heels of domestic public relations woes in the United States, Facebook now contends with a forthcoming “cease and desist” directive in Germany.
The Federal Cartel Office handles various matters related to competition and antitrust in Germany. Regulators from the FCO conducted a four-year investigation into Facebook and the company’s practices. Apparently, the office will tell Facebook to stop gathering a percentage of data.
The term bandied about in news reports isn’t “percentage” though. The far more ambiguous term “some.” At this point, no definitive instructions exist to define what exactly the regulator will tell Facebook to stop. Cynical followers of Facebook’s troubles may see the office’s eventual steps as being minor ones intended to show action. A four-year investigation does indicate regulators do take the data collection issue seriously.
The social media giant may never fully come out from under the dark cloud the data collection scandal brought forth. Facebook made users in Germany and elsewhere concerned about what the social media giant does with the unauthorized collected data. People don’t like the idea that a vast corporation takes personal information without permission to use the data for profiteering.
Facebook isn’t likely to fold due to the scandal. Mitigating the fallout won’t be too difficult as long as another serious scandal doesn’t break. Users, however, may choose to use Facebook less. A sizeable percentage may opt not to use Facebook anymore. Ultimately, Facebook’s advertising revenue suffers when these things occur. The eventual negative press in Germany pending the office’s actions won’t help the situation.
The FCO centers its complaint on Facebook’s usage of third-party apps to collect user data. Facebook, not surprisingly, disputes findings from the regulator. Regardless of the social media company’s stance, the odds of the FCO winning the fight are probably higher than Facebook’s.
Dil Bole Oberoi
