Facebook Case in Germany .

To: The Prime Minister
From: Mavis Bio Asieduaa
Subject: Facebook Case in Germany
Introduction
Introduction Social media platforms have transformed the way people communicate and interact.
These platforms, however, are not without their challenges. Data privacy and ownership are
increasingly becoming major concerns as users become more aware of the value of their personal
data. In this report, we will assess the German Facebook case and recommend measures to
regulate data processing in our country.
The recent Facebook case in Germany has become a matter of concern for both the government
and the public. The Federal Cartel Office in Germany found that Facebook had abused its
dominant position by collecting user data without their consent. In response to this, the
government needs to take concrete steps to ensure that such practices are not repeated in the
future.
Background
Facebook is a social network platform with over 2 billion active users worldwide. The company
has been criticized in the past for its privacy policies and the way it handles user data. In 2018,
the Cambridge Analytica scandal broke out, which revealed that the data of millions of Facebook
users had been harvested without their consent. Following this, the German Federal Cartel Office
launched an investigation against Facebook and found that the company had abused its market
power by collecting user data without their explicit consent.

Implications
The German Federal Cartel Office's decision has far-reaching implications, not just for Facebook
but for other tech companies as well. The ruling sets a precedent that companies with dominant
market positions cannot collect user data without their explicit consent. The decision has also
raised concerns about the monopoly power of big tech companies and their ability to influence
public discourse.
Competition Problems of Facebook's Digital Business Model
Facebook's digital business model creates competition problems that stem from the control of
user-generated data and dominance in the social media market. First, the company's vast user-
generated data enables it to analyse and target individuals and groups with personalized ads. This
gives Facebook an unfair competitive advantage over smaller competitors who are unable to
access similar data. Second, Facebook's control of the social media market restricts competition
by limiting the entry of new firms seeking to offer similar services. Facebook's market power
means that it can acquire potential rivals or copy their features, to eliminate competition. This
has led to the emergence of "Facebook fatigue," where users feel trapped by the platform's
dominance and lack of competition.
The Main Problem of Facebook's Digital Business Model
The main problem of Facebook's digital business model is the lack of control over user-
generated data. Facebook retains ownership of users' data, which makes it difficult for users to
determine how their data is used. Since Facebook's business model is reliant on targeted
advertising, users' data is the core component of its revenue stream. This has led to various
privacy concerns, particularly when it comes to the misuse of user data for political campaigns,
such as the Cambridge Analytica scandal. Furthermore, Facebook's ability to collect and analyse
vast amounts of user data means that it has unparalleled control over user behaviour, which
raises concerns about the potential for manipulation.