Regulatory Trouble For Facebook Inc (FB) In Europe

Facebook Inc (NASDAQ:FB)’s recent move to enact a new privacy policy has raised concerns in Europe, a continent where Google Inc (NASDAQ:GOOGL) has recently been fined various times over data handling violations. A taskforce has been formed to look into the parts of the privacy policy documents to identify clauses that may be in violation of the European Union privacy laws. Facebook may be required to adjust the terms of its privacy document or face charges if the investigations unearth issues of concern in the updated privacy policy.

The taskforce to study Facebook Inc (NASDAQ:FB)’s updated privacy policy will be led by Germany, the Netherlands and Belgium. Italy could also join the taskforce team. The list of the countries in the taskforce includes those that had previously taken on Google over its data protection violations.

What the new policy says

In Europe, data protection authorities are particularly concerned about clauses in Facebook Inc (NASDAQ:FB)’s updated privacy document that allow the company to track users offsite. The other concern to regulators is the harvesting of information about users on third-party services and apps. In their privacy policy Facebook said it would be able to track the Web activities of its users, especially when they are on websites that are owned or affiliated to it. Furthermore, Facebook updated its privacy policy document to say that it would be able to fetch information and images of its users for commercial purposes without compensation.

Facebook owns a number of apps such as WhatsApp and Instagram, which have millions of active users.

Login recovery

According to Facebook Inc (NASDAQ:FB), the company’s new data handling measures are aimed at helping to improve their services for users. For example, the company said it would become easier for users of Instagram to recover their login details through Facebook if they happen to forget such details.

The company further said that it deemed the updated privacy policy to be in compliance with the applicable laws. Facebook has its European headquarters in Dublin.

Taskforce recommendation

When the European taskforce is through with its investigations, it will provide reccommendations to Facebook Inc (NASDAQ:FB) regarding areas the new privacy policy will need to be changed. Facebook should be able to make the necessary changes or face charges of data handling violation, like Google has.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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