Facebook Users Affected by Data Breach Eligible for Compensation, German Court Says

A Facebook logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado
A Facebook logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado
TT
20

Facebook Users Affected by Data Breach Eligible for Compensation, German Court Says

A Facebook logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado
A Facebook logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado

A German court said on Monday that Facebook users whose data was illegally obtained in 2018 and 2019 were eligible for compensation.

The Federal Court of Justice (BGH) ruled that the loss of control over one's data online was grounds for damages without having to prove specific financial losses.

Thousands of Facebook users in Germany are demanding compensation from parent company Meta for insufficient protection of their data after unknown third parties were able to access user accounts by guessing phone numbers.

The claims, which stem from a data breach in 2021 of information gathered through the Facebook friend search feature, had been dismissed in principle by a lower court in Cologne and will now have to be re-examined.

The plaintiff had demanded damages of 1,000 euros ($1,056), but the BGH said that around 100 euros would be appropriate with no proof of financial loss.

According to the Karlsruhe-based court, the lower court must determine whether Facebook's terms of use were transparent and comprehensible, and whether users' consent to the use of their data was voluntary.

Meta previously refused to pay compensation on the grounds that those affected had not been able to prove any concrete damages.

A Meta spokesperson said the BGH's ruling was "inconsistent with the recent case law of the European Court of Justice, the highest court in Europe."

"Similar claims have already been dismissed 6,000 times by German courts, with a large number of judges ruling that no claims for liability or damages exist," the spokesperson said. "Facebook's systems were not hacked in this incident and there was no data breach."

Roughly six million people in Germany were affected by the leak.



Microsoft Pledges to Protect European Operations, Unveils Data Center Expansion

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
TT
20

Microsoft Pledges to Protect European Operations, Unveils Data Center Expansion

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)

Microsoft pledged Wednesday to fight any US government order to halt data center operations in Europe as it sought to soothe concerns among European customers that trans-Atlantic tensions would lead to service disruptions.

The company's president, Brad Smith, said it's not something that officials are talking about in Washington, D.C. but it is a “real concern” for Microsoft's customers across Europe, which include governments.

President Donald Trump has stoked tensions between the US and Europe with his tariff-fueled trade war, and alarmed European leaders with policy changes, including pausing intelligence sharing with Ukraine, that throw into doubt his administration's commitment to the trans-Atlantic relationship, The AP news reported.

Smith, speaking at an event in Brussels, tried to allay concerns as he announced that the company was expanding data center operations across Europe.

“What we want Europeans to know is that they can count on us,” he said in a speech.

“In the unlikely event we are ever ordered by any government anywhere in the world to suspend or cease cloud operations in Europe, we are committing that Microsoft will promptly and vigorously contest such a measure using all legal avenues available, including by pursuing litigation in court,” Smith wrote in a Wednesday blog post.

He noted that Microsoft has experience fighting lawsuits from the previous Trump administration as well as from former President Barack Obama’s administration.

“If we ever find ourselves losing we will put in place business continuity arrangements” that include storing computer code in Switzerland that European partners can access, he said.

Microsoft is making five digital commitments to Europe, including increasing its data center capacity by 40 in 16 countries over the next two years, Smith said. The expansion will cost tens of billions of dollars annually. Smith declined to be more specific about the cost when asked by reporters.

The expansion comes amid calls for Europe to assert tech and data sovereignty by weaning itself off reliance from big US cloud data service providers, including Microsoft, Amazon and, to a lesser extent, Google.

“Given recent geopolitical volatility, we recognize that European governments likely will consider additional options,” and Microsoft is committed to collaborating with European companies, Smith said.