Data watchdogs of any EU nation can act against big tech

The ruling came as part of a case between Belgian authorities and Facebook stretching back several years

The European Court of Justice (ECJ) has ruled that the data watchdogs of any EU member nations can take action against big tech firms like Apple, Facebook and Google.

The ruling came as part of a case between Belgian authorities and Facebook stretching back several years when Belgium’s data protection watchdog wanted to stop Facebook for placing tracking cookies on user’s browsers without consent.

The ruling is a blow to the social networking giant, which had sought to limit exposure to one over-arching regulation.

However, analysts said the ruling wouldn’t have any major implications for tech giants.

Under certain conditions, a national supervisory authority may exercise its power to bring any alleged infringement of the EU’s General Data Protection Regulation (GDPR) before a court of a member state, even though that authority is not the lead supervisory authority with regard to that processing, the CJEU said in a ruling on Tuesday.

Responding to the ruling, Jack Gilbert, associate general counsel at Facebook, told Yahoo Finance UK: We are pleased that the CJEU has upheld the value and principles of the one-stop-shop mechanism, and highlighted its importance in ensuring the efficient and consistent application of GDPR across the EU.

Facebook had argued that under EU GDPR rules only one national data protection authority has the power to handle cases involving data complaints.

GDPR gives regulators the power to fine companies as much as 4% of their annual sales.

Many Big Tech companies have their European headquarters in Ireland. However, Ireland’s regulator has often been criticised for taking too long to act.

Reuters quoted the European Consumer Organisation’s director general Monique Goyens as saying: Most big tech companies are based in Ireland, and it should not be up to that country’s authority alone to protect 500 million consumers in the EU, especially if it does not rise to the challenge.

Ireland has defended itself by saying it needs to be extra diligent in dealing with powerful tech giants, the publication reported, as it described the ruling as “a blow to Facebook” and said tech giants could face more scrutiny and sanctions.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, told Yahoo Finance UK the ruling was another chip in the armour of Facebook but was unlikely to trip up the social network’s given its huge reach and power.

It may add to the regulatory pressure which facing Facebook, but it certainly isn’t its biggest headache and investors are likely to shrug off this latest development, she said.

In her opinion, Big Tech’s focus will be trained much more intensely on five bills being put before US Congress aimed at limiting their power and could potentially lead to the break up monopolies