Social networking giant Facebook (FB, Financial) seems to be on the wrong side of the law, with alleged violations applicable within the European Union. A recent study in Belgium has found that the Mark Zuckerberg led social networking company, has done little to work on bettering the privacy related concerns of the site.
The study was commissioned by the Belgian Privacy Commission and the Centre of Interdisciplinary Law and ICT, at the University of Leuven in Belgium, and has found that the European Union Laws for privacy are in contradiction to the policies followed by Facebook. Users generally do not go into the depths of the privacy rules and regulations on the site, but the study reveals that the concerns which were raised earlier for consumer protection and privacy, did prompt Facebook to come up with a new set of policies, but a closer examination reveals that the new set is nothing but an extension of the earlier existing policies, also in contradiction of EU Consumer Protection laws.
Issues gripping Facebook legally
- Privacy issues have long been a concern for Facebook. Even with the latest developments, most of the privacy issues are to be handled at the user’s end, which makes them vulnerable to information theft, as the privacy rules remain to be vague and open-ended. According to the Belgian study, the default settings for social advertising or profiling of users is a major issue, as neither does it adhere to legal standards of validity of consent, or does it give users an alternative of being able to control settings as per their likings.
- If a user is using the services of Facebook via a mobile device, which is increasingly the trend in the last few years, the option of hiding one’s location is near impossible. The only way one can do it is by turning of GPS settings on the handheld device, before using the Facebook application, thus hampering other operations. What is also disturbing about it, is that none is clear from Facebook, as to what they intend to do with the vast data they collect through the site and the WhatsApp application.
According to the authorities’ allegations, “We argue that the collection or use of device information envisaged by the 2015 data use policy does not comply with the requirements of article 5(3) of the EU e-Privacy Directive, which requires free and informed prior consent before storing or accessing information on an individual’s device.”
If this was not sufficient, there has been a class-action suit against Facebook in August of 2014, whereby an Austrian privacy group Europe V Facebook led by law graduate Max Schrems, allege that the company has been spying on the users on behalf of the United States government, and passing on crucial private information with regards to their location and other details without consent. So far, 75,000 users have signed on corner Facebook in this case, and April 2015 is when the first hearing of the case takes place, to determine the admissibility. The legal ramifications are hefty, as each user is seeking $562 (approximately) as compensation, which amounts to a total $14.175 million (approximately) for the current set of users who have signed up. Also, if there is a verdict against Facebook, the business practices would be declared illegal under applicable European Union (EU) laws.
The Facebook defense
Rather obviously, Facebook has been putting up its own defense saying that they have not violated privacy laws in the European Union. There is a team that has met with Bart Tommelein, the Belgian Privacy Minister to discuss their latest report on the issue, and convince the government that the privacy laws of the country have not been violated. They have issued a statement as well, saying, “As a company with international headquarters in Dublin, we routinely review product and policy updates  including this one with our regulator, the Irish Data Protection Commissioner, who oversees our compliance with the EU Data Protection Directive as implemented under Irish law." However, this hasn’t stopped Belgian groups from maintaining a close vigil on the social networking site’s activities, which will eventually be reported to the Belgian Privacy Commission.
The way forward
The upcoming hearing in April will be crucial for Facebook to see how the legal battles are fought. Apart from admissibility of the class action suit from Austria, the Belgian authorities’ case will be closely looked on the same grounds, and future legal action will be strongly looked upon. What this also means is that Facebook will have to undergo a sea change in actual terms of privacy for users, making it less complicated in legal jargon and easier for the users to understand and customize. According to official data, EU had 194,342,680 users of Facebook in 2012, and the numbers have swelled since then. After the October 2014 acquisition of WhatsApp for $22billion, Facebook will be looking to consolidate its position in the market and increase its user base and monetize its services. The only hindrance would a negative legal outcome of the cases.
