Facebook Inc (NASDAQ:FB) is now facing a lawsuit for multiple counts of privacy violation. The lawsuit was initiated successfully after previous failure and rejection by Vienna’s commercial court where it was referred to the regional court.
The lawsuit was opened by Europe vs. Facebook privacy campaigner, with Max Schrems, who is also lawyer standing on behalf of the petitioners. Max is said to be one of the forces behind the fight against Facebook’s decreasing data protection consciousness for some time. He is rumored to have been behind the forceful Facebook’s global user vote that was aimed at proposed user policy changes three years ago.
Facebook vs 50,000 Europeans
The legal initiative began during the 2014 summer season. European privacy whistle blowers were continuously attacking Facebook Inc (NASDAQ:FB) due to its insufficient user privacy. The company’s inability to review or change its policies led to increased campaigns for legal action. The petition attracted a lot of attention from most users of the social network. Over 50,000 jumped onboard in support of the suit to ascertain their claim.
According to the petition group, the company was responsible for the following crimes:
- Lack of consent to multiple types of private user data use.
- Supporting the NSA’s PRISM surveillance initiative.
- The use of a data policy that is unauthorized in the EU laws.
- Tracking users through other websites.
- Invalid transfer of user data to other external platforms.
- Illegal introduction of ‘Graph search.
€500 compensation for victims
If the legal action is successful, the Austrian law firm Roland ProzessFinanz AG will take 20% of the total settlements from the case. The 20% will be charged for facilitating the claim on behalf of all the petitioners. The rest of the money will be distributed, and each activist will receive about €500.
Since all the activists cannot show up in court or represent themselves, the Australian law firm came up with the idea to use one individual to represent the rest. Thus, Schrems was selected as the Plaintiff though he won’t be claiming any damages.
On this morning’s market shares in Facebook are selling off. The company’s stock is set to open lower by a fraction.