German court rules Meta tracking technology violates European privacy laws

A German court has ruled that Meta must pay €5,000 ($5,900) to a German Facebook user who sued the platform for embedding tracking technology in third-party websites — a ruling that could open the door to large fines down the road over data privacy violations relating to pixels and similar tools. 

The Regional Court of Leipzig in Germany ruled Friday that Meta tracking pixels and software development kits embedded in countless websites and apps collect users’ data without their consent and violate the continent’s General Data Protection Regulation (GDPR).

The ruling in favor of the plaintiff sets a precedent which the court acknowledged will allow countless other users to sue without “explicitly demonstrating individual damages,” according to a Leipzig Regional Court press release. 

"Every user is individually identifiable to Meta at all times as soon as they visit the third-party websites or use an app, even if they have not logged in via the Instagram and Facebook account," the press release said. 

Meta “massively violates” European data protection law by processing personal data to “profile” Facebook users, yielding the tech giant billions in profits, the release said.

The court’s decision exposes all websites and apps using tracking technology to significant lawsuits, experts said.

The ruling sets a precedent for a class action lawsuit which has “business breaking potential,”  said Ronni K. Gothard Christiansen, the CEO of AesirX, a consultancy which helps businesses comply with data privacy laws.

Such a lawsuit could conceivably include all German visitors to any site using Meta pixels or other tracking technologies without user consent, he said.

“This may very well be one of the most substantial rulings coming out of Europe this year,” Christiansen said. “€5,000 in damages for one visitor adds up quickly if you have tens of thousands of visitors, or even millions.”