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German cartel authorities have concluded their investigation into Meta’s data practices after reaching an agreement with the company

German cartel authorities concluded their investigation into Meta's data practices following an agreement with the US tech giant. Meta, the parent company of Facebook and Instagram, consented to measures that addressed the authority's concerns over personal data use.

The German Federal Cartel Office, known as the Bundeskartellamt, had been scrutinizing Meta’s data collection and integration methods for several years. The primary issue was the company’s practice of gathering user data from various sources, including third-party websites, and consolidating it into a single user account without explicit user consent.

Andreas Mundt, president of the cartel office, stated that using Facebook will no longer require consenting to the unlimited collection and integration of data. The new measures ensure that data gathered from outside the Facebook service, such as Instagram or third-party websites, will not be automatically merged into a user’s account unless permission is explicitly granted.

Meta's agreement marks a significant change in its operational model within Germany. The move comes as European regulators intensify scrutiny over how tech companies handle user data. Mundt emphasized that the outcome strengthens consumer rights by providing users with greater control over how their information is used and shared across platforms.

The cartel office initiated proceedings against Meta back in 2019, citing violations of antitrust rules linked to data practices. Meta faced allegations of exploiting its dominant market position to enforce terms that were unfavorable to users, such as compelling them to accept extensive data tracking across multiple platforms.

The resolution between Meta and the Bundeskartellamt avoids further legal battles. The company now commits to clear and transparent data processing practices. The new guidelines will also allow users to decide more granularly which data they want to share with Meta-owned platforms.

Meta’s data usage policy changes could influence its operations across Europe, given the region's strict data protection rules under the General Data Protection Regulation (GDPR). While the German authorities’ decision is based on antitrust principles, it aligns closely with GDPR’s emphasis on user consent and data transparency.

The Bundeskartellamt’s intervention reflects broader trends of European regulators targeting tech giants over their handling of personal information and potential misuse of market power. Last year, Germany’s highest court upheld a ruling that Meta must comply with strict regulations set by the cartel office. This agreement signifies Meta’s shift in strategy to comply with European standards and avoid further legal complications.

Meta’s new policies will soon be implemented across Germany, bringing the company’s data practices in line with local requirements. The changes come as part of Meta’s broader efforts to improve its reputation in Europe and demonstrate compliance with stringent data regulations.

The outcome is seen as a win for German regulators, showcasing their ability to influence global tech companies and enforce fair practices in the digital economy. The agreement between Meta and the Bundeskartellamt sets a precedent for how similar cases may unfold across Europe, with regulators pushing for more consumer rights and transparency in data management.