German Court Rules Facebook Users Eligible for Compensation Over Data Breach
Background
In a significant ruling, the Federal Court of Justice (BGH) in Germany has stated that Facebook users whose data was illegally obtained in 2018 and 2019 are eligible for compensation. The court’s decision comes after thousands of Facebook users in Germany demanded compensation from parent company Meta for insufficient protection of their data.
The Data Breach
The claims stem from a data breach in 2021 of information gathered through the Facebook friend search feature. The breach allowed unknown third parties to access user accounts by guessing phone numbers. 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.
The Court’s Ruling
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. The BGH’s ruling is seen as a significant development in the ongoing debate over data protection and user rights.
Meta’s Response
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." The spokesperson also noted that 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.
Impact of the Ruling
The ruling has significant implications for Facebook users in Germany and beyond. The decision recognizes that the loss of control over one’s data online is grounds for damages, even without proof of specific financial losses. This ruling is likely to have far-reaching consequences for the tech industry and the way companies handle user data.
Key Statistics
- Roughly six million people in Germany were affected by the leak.
- The claims, which stem from a data breach in 2021, had been dismissed in principle by a lower court in Cologne and will now have to be re-examined.
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