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Hungarian Competition Authority Fines Facebook Ireland for Misleading Users

Hungarian Competition Authority Fines Facebook Ireland for Misleading Users

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According to the press release issued on 6 December 2019, the Hungarian Competition Authority (GVH) imposed a fine of HUF 1.2 billion (EUR 3.6 million) on Facebook for misleading users by claiming its services were free.

GVH found that Facebook Ireland Ltd. had breached competition law when it advertised its services as being free of charge on its home page and Help Centre. GVH stated that users did not have to pay a fee for using the service, however, Facebook benefited economically from the user’s activity and data. According to GVH, the user data Facebook gathered enabled it to post targeted ads for users. In addition, users were not aware of the amount and value of data handed over to Facebook while using the service.

GVH imposed a fine amounting to a total of EUR 3.6 million, which is the highest fine that the authority has ever imposed in a consumer protection case.

It is unclear yet whether Facebook had amended the misleading statements since then.

By Adrienn Megyesi, Attorney at Law, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com