EU Regulators Probe WhatsApp Data-Share Plan -- WSJ
August 30 2016 - 3:03AM
Dow Jones News
By Sam Schechner in Paris and Yoree Koh in San Francisco
European privacy regulators are investigating messaging service
WhatsApp's plan to share user information including phone numbers
with its parent, Facebook Inc., adding to pressure on both sides of
the Atlantic over the social media firm's privacy practices.
A European Union body representing the bloc's 28 national
data-protection authorities said Monday that its members were
following "with great vigilance" changes to WhatsApp's privacy
policy last week. The new policy disclosed the plan to share data
with Facebook, while giving only existing WhatsApp users the
ability to opt out of part of the data-sharing, setting off
complaints from privacy activists in the U.S. and Europe.
"What's at stake is individual control of one's data when they
are combined by internet giants," the group, called the Article 29
Working Party, said in an emailed statement.
Britain's privacy regulator last week that it was also planning
to look into the issue, saying that some users "may be concerned by
the lack of control."
Consumer privacy advocates in the U.S. on Monday filed a
complaint with the Federal Trade Commission, alleging that the
change represents an about-face on WhatsApp's previous promise to
consumers that "nothing would change" when the social network
acquired the messaging startup in 2014.
The Electronic Privacy Information Center and the Center for
Digital Democracy complaint filed with the FTC charges that the
proposed changes to use WhatsApp user data for "marketing
practices" constitutes "unfair and deceptive trade practices."
WhatsApp said it "complies with applicable laws," adding that
"we look forward to answering any questions regulators or other
stakeholders have about this update."
The pushback from European regulators opens a new front in
Facebook's privacy battles. Germany's Federal Cartel Office earlier
this year said it is investigating whether Facebook Inc. abuses its
dominance as a social network to harvest personal information.
France's privacy watchdog has threatened to fine Facebook Inc. if
it doesn't change how it handles data about its users.
Facebook has said it complies with European privacy laws and has
won appeals of privacy cases against it in Belgium and Brussels in
recent months as well.
Last week's change in WhatsApp's privacy policy struck a chord
because the service has long touted its privacy credentials.
Under the new WhatsApp privacy policy, existing users have 30
days to agree to the new sharing, but can as part of that process
opt out of letting Facebook use the data for marketing purposes.
The complaint alleges that that requirement goes against a 2012 FTC
consent order that demands the company use an "opt-in" process when
changing its privacy policy.
WhatsApp disputed the characterization, saying that it both asks
for content from all users, and offers "industry leading choice to
existing users over how their data is used."
Write to Sam Schechner at sam.schechner@wsj.com and Yoree Koh at
yoree.koh@wsj.com
(END) Dow Jones Newswires
August 30, 2016 02:48 ET (06:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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