13.11.2024

Facebook data leak: Federal Court of Justice's lead decision on loss of control as damage

13.11.2024

Facebook data leak: Federal Court of Justice's lead decision on loss of control as damage

On the day the new Leading Decision Act came into force, the Federal Court of Justice (BGH) decided that an appeal against Facebook parent company Meta was the first lead decision procedure.

The proceedings against Meta before the Federal Court of Justice (Ref.: VI ZR 10/24) have far-reaching significance. For example, fundamental legal issues relating to compensation under Article 82 GDPR are to be clarified there — an issue that will also have an impact on numerous similar proceedings that are currently pending before German courts.

Background: Scraping attack on Facebook user data

The subject of the proceedings is a data leak from 2018 and 2019. Unknown perpetrators had extracted personal, non-public data from millions of users using the so-called scraping method (German: mining) via Facebook's contact import function and published it on the Darknet two years later. As a result, several law firms had collected claims from massively affected Facebook users and filed a lawsuit against Meta before the courts.

The judgments in the lower courts have varied so far. In some cases, the persons concerned were awarded immaterial damages (LG Paderborn, judgment of December 19, 2022, file no.: 3 O 99/22) while other courts dismissed the claims (including Cologne Higher Regional Court, judgment of December 7, 2023, file no.: 15 U 67/23; Dresden Higher Regional Court, judgment of April 16, 2024, file no.: 4 U 213/24). The latter was often justified by the fact that the plaintiffs had not provided sufficient evidence of a noticeable impairment, which was one of the conditions for a GDPR claim for damages. Several of these proceedings were appealed to the Federal Court of Justice.

Guiding decision process should provide clarity

Through last-minute settlements, Meta has always been able to prevent a supreme court decision in scraping cases. However, by decision of October 31, 2024, the Federal Court of Justice designated the proceedings before the Cologne Higher Regional Court as a lead decision procedure and put a stop to Meta's litigation tactics (Ref.: VI ZR 10/24).

The introduction of lead decisions in mass proceedings involving similar legal issues — such as those in the scraping complex — is intended to enable fundamental decisions even in cases where an appeal has been withdrawn for procedural reasons. In this way, a landmark decision of the Federal Court of Justice can be issued and the work of civil courts in further pending proceedings can be made more efficient.

Fundamental legal issues relating to Art. 82 GDPR

In its first lead decision procedure, the Federal Court of Justice must now decide, among other things, whether the mere loss of control over personal data is likely to cause immaterial damage within the meaning of Article 82 (1) GDPR. In addition, he must clarify questions about the assessment of damage and the requirements for substantiating an action for damages under Article 82 (1) of the GDPR.

Depending on how the Federal Court of Justice answers these questions, this could have far-reaching consequences for mass proceedings in connection with GDPR violations. A consumer-friendly interpretation of the requirements could further promote the business model for claims for damages in the event of data leaks and increase the number of corresponding proceedings.

outlook

As part of its preliminary assessment at the hearing on November 11, 2024, the Federal Court of Justice announced that the loss of control over one's own data could probably be sufficient for a claim for compensation. This loss would have to be proven, but not, for example, any apprehensions or fears. In addition, Meta must also compensate for future damage resulting from the data breach, even though these are not yet known.

The date for the verdict was set for November 18, 2024. According to the preliminary assessment of the Federal Court of Justice, a decision in favor of Facebook users could be expected.

We will inform you about all the latest developments relating to the BGH's lead decision process.

We are also happy to advise you on data protection and legal proceedings in connection with claims for damages due to GDPR violations.

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