ECJ decis­i­on in anti­trust case against Meta

One is invol­ved, all are affected!

The press calls it a “defeat for Face­book”. In its judgment of 4 July 2023 (case C‑252/21 ), the ECJ ruled that natio­nal com­pe­ti­ti­on aut­ho­ri­ties are allo­wed to estab­lish and sanc­tion brea­ches of data pro­tec­tion law. But the decis­i­on goes far bey­ond anti­trust law: The ruling has a signi­fi­cant impact on data pro­tec­tion law and affects com­pa­nies far bey­ond Meta. Find out in this artic­le whe­ther your com­pa­ny is affec­ted and what steps are now necessary.

Entre­pre­neu­ri­al free­dom in the cross­hairs of the ECJ

The ECJ decis­i­on lacks the neces­sa­ry balan­cing of the fun­da­men­tal right to data pro­tec­tion and the free­dom to con­duct a busi­ness, which is also pro­tec­ted by the EU Char­ter of Fun­da­men­tal Rights. Ins­tead, the ECJ adopts a very rest­ric­ti­ve inter­pre­ta­ti­on which, when appli­ed strin­gent­ly, makes the com­mer­cial use of per­so­nal data almost impos­si­ble. Com­pa­nies are forced by the decis­i­on to ali­gn the con­tent of their offers more clo­se­ly with data pro­tec­tion regu­la­ti­ons and to obser­ve the fol­lo­wing requirements:

  1. Accor­ding to the ECJ, pro­ces­sing for the per­for­mance of a con­tract (Art. 6 (1) (b) GDPR) is only per­mis­si­ble if the pro­ces­sing is objec­tively indis­pensable to ful­fil the main pur­po­se of the con­tract per­for­mance. In all other cases, even a clear con­trac­tu­al agree­ment can­not legi­ti­mi­se the pro­ces­sing. If the ruling is appli­ed strin­gent­ly, this means that con­tract per­for­mance is no lon­ger a legal basis for many inno­va­ti­ve busi­ness models.
  2. The ECJ also shows a clear ten­den­cy with regard to the legi­ti­ma­te inte­rest in data pro­ces­sing (Artic­le 6 (1) (f) GDPR). Alt­hough the ECJ does not com­ple­te­ly rule out the exis­tence of a legi­ti­ma­te inte­rest in the com­mer­cial use of per­so­nal data, this shall only be dee­med given if the user could reason­ab­ly expect the spe­ci­fic scope of the data pro­ces­sing. The same stan­dards shall app­ly with respect to the legi­ti­ma­te inte­rest in ensu­ring net­work secu­ri­ty or in car­ry­ing out pro­duct impro­ve­ments. The inte­rest of the data sub­ject is to be taken into account to a much grea­ter ext­ent than before.
  3. The ECJ also does not cate­go­ri­cal­ly exclude the pos­si­bi­li­ty of giving con­sent (Art. 6 (1) (a) GDPR) to the com­mer­cial use of per­so­nal data, but requi­res that data sub­jects must be able to refu­se indi­vi­du­al pro­ces­sing ope­ra­ti­ons and that they be offe­red an equi­va­lent alter­na­ti­ve (also in terms of cos­ts). The exis­ting high requi­re­ments for con­sent, which in many cases can hard­ly be imple­men­ted in a reasonable man­ner in prac­ti­ce, are thus fur­ther tightened.

Par­ti­cu­lar­ly sen­si­ti­ve data are all around us now

The ECJ decis­i­on also has signi­fi­cant impli­ca­ti­ons for the pro­ces­sing of par­ti­cu­lar­ly sen­si­ti­ve data (Art. 9 GDPR). Accor­ding to the ECJ, even cal­ling up a web­site or app with refe­rence to the data cate­go­ries lis­ted in Art. 9 GDPR should be sub­ject to a par­ti­cu­lar­ly high level of pro­tec­tion. When strin­gent­ly app­ly­ing the ECJ decis­i­on, signi­fi­cant­ly more per­so­nal data are likely to be clas­si­fied as par­ti­cu­lar­ly sen­si­ti­ve in the future. Pro­ces­sing of the­se data is then only per­mis­si­ble under the addi­tio­nal con­di­ti­ons of Art. 9 GDPR. The ECJ sets fur­ther hurd­les for the pro­ces­sing of par­ti­cu­lar­ly sen­si­ti­ve data which the data sub­ject has mani­fest­ly made public (Art. 9 (2) (e) GDPR). The pro­ces­sing of such data is only per­mis­si­ble inso­far as the data sub­ject, being ful­ly awa­re of the facts, has cle­ar­ly expres­sed his or her decis­i­on to publish the data on the basis of indi­vi­du­al pre­fe­ren­ces. The­r­e­fo­re, accor­ding to the ECJ, a clear inten­ti­on to publish the data can­not be infer­red from mere­ly cal­ling up a web­site with par­ti­cu­lar­ly sen­si­ti­ve data, such as an online phar­ma­cy. The ECJ fur­ther sta­tes that a data set con­tai­ning both par­ti­cu­lar­ly sen­si­ti­ve and “ordi­na­ry” per­so­nal data falls under Art. 9 GDPR as a who­le. If it is not pos­si­ble to sepa­ra­te the data, the requi­re­ments of Art. 9 GDPR must be met for the enti­re data set. A sin­gle pie­ce of sen­si­ti­ve infor­ma­ti­on can the­r­e­fo­re infect the enti­re data set. It remains unclear how such an exten­si­ve inter­pre­ta­ti­on of Art. 9 GDPR would be in line with ano­ther objec­ti­ve of the GDPR, which is also to pro­mo­te the free move­ment of per­so­nal data (Art. 1 (1) GDPR).

Con­clu­si­on

Gloa­ting or spi­te are out of place in view of the Meta decis­i­on, becau­se the ECJ gene­ral­ly places such high demands on the requi­re­ments of the rele­vant legal bases that, when appli­ed strin­gent­ly, they can hard­ly be ful­fil­led not only by Meta, but also by other com­pa­nies. The decis­i­on the­r­e­fo­re has far-reaching signi­fi­can­ce for all com­pa­nies that pro­cess per­so­nal data and must be taken into account appro­pria­te­ly. At the same time, the decis­i­on under­lines how important new legis­la­ti­ve pro­jects such as the Data Act or the Euro­pean Health Data Space are for the inno­va­ti­ve use of per­so­nal data.

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