The Bundeskartellamt Publishes the Final Report on its Sector Inquiry into Messenger and Video Services

On May 17, 2023, the German Supervisory Authority (“the Bundeskartellamt”) published on its official website the final report of the sector survey on messaging and video services

The Bundeskartellamt has released its final report on a sector inquiry into messenger and video services, focusing on data protection, transparency, and interoperability. The inquiry revealed that certain services may be violating consumer laws in terms of important user functions.

One violation relates to the collection of data from contacts that have not registered with the service when contact lists are synchronized. The Bundeskartellamt believes that this practice, if ongoing, may breach the General Data Protection Regulation (“GDPR”), even if the telephone numbers are encrypted.

Some messenger and video services also fail to comply with data transfer and storage laws. According to German and European regulations, the personal data of consumers can only be transferred and stored in countries with data protection levels similar to those guaranteed by the European GDPR. Currently, data transfer and storage in the USA are not considered permissible.

Moreover, the German Act against Unfair Competition (“UWG”) requires services to provide accurate information on how communication security is ensured, including data encryption. The Bundeskartellamt suggests that many services need to improve their current practices in this regard.

While encryption is an important aspect of data security, the inquiry highlights that there is still much work to be done in this area. The Bundeskartellamt, in collaboration with the Federal Office for Information Security (“BSI”), has created a checklist outlining essential criteria for data security and legal compliance.

The inquiry also emphasizes the need to consider the potential negative effects of standardization for interoperability on innovation and competition among different service providers.

Furthermore, implementing data security measures such as encryption, as well as monitoring and controlling data, pose technical challenges that can introduce new risks. Consequently, the level of data security provided by different services may become less transparent to consumers.

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Zumbul Attorneys-at-Law

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