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
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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.



Musk's SpaceX Preparing to Launch Tender Offer in Dec at $135/share, FT Reports

Elon Musk, chief executive officer of SpaceX and Tesla, attends the launch of SpaceX's Starlink internet service in Indonesia at a sub district community health center in Denpasar, Bali, May 19, 2024. (Reuters)
Elon Musk, chief executive officer of SpaceX and Tesla, attends the launch of SpaceX's Starlink internet service in Indonesia at a sub district community health center in Denpasar, Bali, May 19, 2024. (Reuters)
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Musk's SpaceX Preparing to Launch Tender Offer in Dec at $135/share, FT Reports

Elon Musk, chief executive officer of SpaceX and Tesla, attends the launch of SpaceX's Starlink internet service in Indonesia at a sub district community health center in Denpasar, Bali, May 19, 2024. (Reuters)
Elon Musk, chief executive officer of SpaceX and Tesla, attends the launch of SpaceX's Starlink internet service in Indonesia at a sub district community health center in Denpasar, Bali, May 19, 2024. (Reuters)

Elon Musk's SpaceX is preparing to launch a tender offer in December to sell existing shares at a price of $135 per share, the Financial Times reported on Friday, citing people with knowledge of the discussions.

The tender offer would value SpaceX at more than $250 billion, according to the report.

SpaceX did not immediately respond to a Reuters request for comment, according to Reuters.

Musk, the world's richest person, is expected to wield significant influence in Washington to secure favorable government treatment for his companies, including SpaceX, after Donald Trump's victory for a second presidency.

Musk's dream of transporting humans to Mars could also become a bigger national priority under Trump, Reuters reported earlier this month.

NASA's Artemis program, which aims to use SpaceX's Starship rocket to put humans on the moon as a proving ground for later Mars missions, is expected to focus more on the Red Planet under Trump and target uncrewed missions there this decade.

Under Trump, SpaceX is also expected to push for even softer regulations on worker safety and safety of participants in private space flights in orbit.

A Reuters investigation last year documented at least 600 worker injuries at SpaceX facilities across the US, and how SpaceX disregarded safety regulations and standard practices.