The Australian Federal Court rejects Facebook’s argument that it couldn’t be sued
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There has been a new development regarding an Australian case against Facebook and the Cambridge Analytica scandal, in which the personal data of millions of people was collected without their consent. The Australian Federal Court rejected Facebook’s argument that it can’t be sued under Australian privacy laws since it doesn’t do business or collect personal information in Australia.
The court’s opinion is that Facebook does business in Australia because it installs cookies on the devices of Australian users. This, according to the court, is ‘an important part of the operation of the Facebook platform.’ Also, according to the court, any website accessible in Australia is doing business in the country.
But, according to Facebook, a cookie isn’t installed where it was placed but where it was sent from. Given that Facebook’s servers aren’t located in Australia, it means that Facebook doesn’t do business there. Facebook also explained that its data centers had delivered digital signals to user devices, which had resulted in a change in the digital status of those devices.
The company also gave an example in which a person from overseas sends a letter to Australia. Upon receiving the letter, the reader decides to take action that has an economic impact. This could never be interpreted as the sender doing business in Australia.
According to the court, Facebook’s explanation ‘proves far too much,’ and is ‘divorced from reality.’ The court also stated: “It proves too much because it has the consequence that no computer-based activity in one jurisdiction can ever amount to more than an effect in computers located in another.”
The lawsuit against Facebook originated from the violation of the privacy of many Australian Facebook users in the Cambridge Analytica scandal, which happened more than four years ago.
By using a personality test app called “This is Your Digital Life,” a consulting firm called Cambridge Analytica gained access to the personal data of millions of Facebook users without their permission. Although only 53 people in Australia had the app installed, the app managed to collect the data of approximately 311,074 other people in the country via these 53. The gathered information from the app was then used mainly for political advertising, like the Brexit and Donald Trump campaigns.
Questions & Answers
Q.What was Facebook’s main argument against being sued under Australian privacy laws?
What was Facebook’s main argument against being sued under Australian privacy laws?
Facebook argued it could not be sued because it does not conduct business or collect personal information within Australia. It contended that cookies are not installed where they are placed, but rather where they are sent from, outside Australia.
Q.Why did the Australian Federal Court disagree with Facebook’s claim about not doing business in Australia?
Why did the Australian Federal Court disagree with Facebook’s claim about not doing business in Australia?
The court found that Facebook does business in Australia by installing cookies on Australian users' devices, which it deemed an important part of its platform's operation. It also stated that any website accessible in Australia is doing business there.
Q.How did Cambridge Analytica gain access to the data of Australian users?
How did Cambridge Analytica gain access to the data of Australian users?
Cambridge Analytica gained access through a personality test app called 'This is Your Digital Life'. Although only 53 Australians installed it, the app collected data from approximately 311,074 other people in Australia via these initial users.
Q.What did the court think of Facebook's example about sending a letter to Australia?
What did the court think of Facebook's example about sending a letter to Australia?
The court rejected Facebook's analogy of sending a letter, stating that its explanation 'proves far too much' and is 'divorced from reality'. It found the consequence of Facebook's argument too broad.