Facebook will be banned from collecting and storing the data of 35 million users of its WhatsApp messaging service in Germany, after officials judged the company had breached data protection laws by sharing customer information.
The data protection commissioner for the city of Hamburg, Johannes Caspar, also ordered Facebook to delete all data, including phone numbers, already forwarded on by WhatsApp. Facebook said it would appeal against both orders.
In a statement, the office of the commissioner noted that after Facebook acquired WhatsApp for $19bn two years ago, both parties had made public assurances that they would not share data.
“The fact that this is now happening not only misleads users and the public, but also constitutes an infringement of national data protection law,” it said.
WhatsApp announced it would share user information with its parent company Facebook for the first time in August, admitting that user data such as phone numbers and device details would now be used to target advertisements on Facebook.
“By connecting your phone number with Facebook’s systems, Facebook can offer better friend suggestions and show you more relevant ads if you have an account with them,” WhatsApp said.
WhatsApp users were then notified of the policy change and were given just 30 days to opt in or out, or face not being able to access the app.
Mr Caspar said such an exchange of information was only permissible if the two companies had established a legal basis for it, by asking WhatsApp users for their permission in advance.
“This has not happened,” he said.
In a statement, Facebook said: “Facebook complies with EU data protection law. We are open to working with the Hamburg DPA in an effort to address their questions and resolve any concerns.”
The WhatsApp investigation may spill over Germany’s borders: earlier this month, European competition commissioner Margrethe Vestager announced that EU officials were asking Facebook follow-up questions on the new data-sharing agreement with WhatsApp.
The Financial Times Limited 2016
