WhatsApp forced to update policies; Irish DPC slapped with corruption allegations

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In this weekly segment, ExchangeWire summarizes major industry updates in media, marketing, and commerce from around the world. In this edition: WhatsApp has been ordered to update privacy policies after the decision; The Irish DPC has been accused of bribery and corruption by noyb; Amazon and Apple were fined by AGCM for alleged anti-competitive binding; and Tencent have been informed that all of their new apps and updates must be approved by the Chinese government.

WhatsApp updates privacy policies following Irish ruling

WhatsApp has announced that it is updating its privacy policy to better educate users about data collection, after being fined a record 225 million euros (£ 188.7 million) for having violates EU data protection regulations. The lawsuit, handed down by the Irish Data Protection Commission, alleged that WhatsApp was not transparent about sharing data with its parent company, Meta. The commission said it found violations in WhatsApp’s explanation of how it “handled user and non-user data.” The fine is the second largest in history in relation to the GDPR.

The California messaging platform is hoping to fight the September fine, initially describing it as “grossly disproportionate,” but has agreed to comply with its overhaul of its policies to ensure data clarity.

The update, which begins on Monday (November 22), will take place without users having to agree or take any action. WhatsApp confirmed that the policy will not change its service, instead adding “additional details on our existing practices.” The adjustments will only appear in the European version of the privacy policies.

The compliance comes as the European Data Protection Board (EDPB) makes a direct offer to EU lawmakers to implement stricter rules on targeted advertising. The EDPB is hoping for alternative advertising methods that do not require online user tracking and profiling, commenting that “a phase-out leading to a ban on targeted advertising on the basis of widespread tracking” is needed.

Irish DPC on defense after being slapped with corruption allegations

The Irish Data Protection Commission (DPC) has been criticized, having been accused of corruption and even bribery in a complaint filed by the non-profit organization Noyb. The organization alleges that the Irish commission gave them an ultimatum in the form of a letter: sign an “illegal” NDA within one working day or be removed from the Facebook process. Noyb described this “counterpart” as “procedural blackmail”.

Vienna-based Noyb filed the complaint with the Austrian Corruption Prosecution Office. Following the filing, noyb published the letters they received, describing the request as illegal: “Only if we shut up, the DPC would ‘grant’ us our legal right to be heard. The writing also shows that the DPC asks the non-profit association to withdraw the existing documents relating to the draft decision, again without a legal basis.

It has been reported that Facebook (now Meta) would benefit significantly from a signed NDA, as new documents could force EU regulators to find their “GDPR circumvention” illegal. This would have major implications for the tech giant if regulators declared their use of personal data illegal since 2018.

Max Schrems, president of noyb.eu, comments: “The DPC recognizes that it has a legal obligation to hear us, but it has now engaged in a form of“ procedural coercion ”. The right to be heard was subject to the signing of an agreement for the benefit of the DPC and Facebook. It is nothing more than an authority demanding to renounce freedom of expression in exchange for procedural rights.

Italy slaps Amazon and Apple with heavy sanctions

Amazon and Apple have been fined more than € 200m (£ 168m) collectively by the Italian Competition Authority (AGCM) for alleged anti-competitive binding, following an investigation into the sale of Apple and Beats products on the Italian Amazon market. According to reports released by AGCM, the tech giants agreed to put in place a restrictive agreement, which was signed on October 31, 2018. Legitimate resellers of “genuine” Beats and Apple products faced limitations when using the e-commerce platform, under the signed agreement.

Both sides have denied any wrongdoing, with the iPhone developer saying, “To ensure that our customers buy genuine products, we work closely with our reseller partners and have dedicated expert teams around the world. who work with law enforcement, customs and merchants to ensure only genuine Apple products are sold. “

The tech giants plan to appeal the fines, with Amazon calling the proposed amount “disproportionate and unjustified.” “We reject the suggestion that Amazon would benefit by excluding salespeople from our store, as our business model is built on their success.” they add.

The Italian competition watchdog claims that the contractual clause violates European Union rules, in addition to affecting competition prices. The companies of the Amazon group are facing a fine of € 68.7m (£ 57.7m), against Apple which bears the cost of a sanction of € 134.5m (£ 112.9m).

Tencent updates must be ignored by Chinese government

Tencent has learned that all of their new apps and updates must be approved by the government, under a new level of child care prescribed by Chinese authorities. “Transitional administrative guidance measures” were recommended for the gaming and messaging platform, as 9 of the group’s apps committed “violations” this year, state media CCTV reported. Before uploading renovations of new or existing applications, the company must request an inspection by the Ministry of Industry and Information Technology to receive the green light. “After passing the inspection, they can then be launched to users as usual,” the ministry said, according to CCTV.

China has implemented aggressive measures to control players in the tech industry, amid growing concerns that platforms are becoming too powerful. According to a report published by the Wall Street Journal, Chinese leaders believe that “data accumulated by the private sector should essentially be viewed as a national asset”, which can be harnessed to meet the needs of the state. This motive resembles the continued regulatory crackdown on China’s tech industry in recent years, inflicted via a storm of new regulations (each pushing authorities one step closer to technological dominance).

Tencent told AFP that it plans to comply with the required requirements, commenting: “We are constantly working to improve user protection features in our applications, and also regularly cooperate with relevant government agencies to ensure compliance. regulatory “.

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