Court Ruling Allows Meta to Use User Data for AI Training

A recent ruling from the Cologne Higher Regional Court has determined that Meta, the parent company of Facebook and Instagram, is permitted to utilize user data for training artificial intelligence (AI) applications. This decision comes after the court rejected an urgent application by the Consumer Protection Agency of North Rhine-Westphalia, which sought to prevent Meta from employing Facebook user data for AI purposes.

The request for an injunction was made following a protracted legal dispute, with the Consumer Protection Agency formally demanding a halt to these AI data usage plans on April 30. Subsequently, on May 12, they filed for a temporary injunction at the Cologne court, which ultimately ruled against them.

Starting May 27, Meta plans to leverage data from all adult users in Europe on its platforms to enhance its AI applications, including its prominent language model, LLaMA. The company intends to use both current and historical user data, giving users the option to opt out if they do not wish for their personal information and images to be utilized for these purposes.

The Consumer Protection Agency expressed urgency in their appeal, citing concerns that once data is integrated into AI systems, it becomes challenging to retract. They argued that Meta's broad justification based on legitimate interest is insufficient and that the processing of particularly sensitive information for AI training should require explicit user consent.

In its ruling, the Cologne court conducted a preliminary assessment and found no violations of the General Data Protection Regulation (GDPR) or the Digital Markets Act (DMA) by Meta. This assessment aligns with evaluations made by the Irish data protection authority, which oversees Meta's operations in the EU. The court noted that data published by users after mid-2024 could be legally processed for these purposes.

The judges concluded that specific consent from users is not necessary in this instance. They determined that Meta's aim to use data for AI training is legitimate and cannot be achieved through alternative, less intrusive means. They acknowledged that significant amounts of data are essential for effective AI training, which cannot be reliably anonymized. In weighing the rights of users against the interests of the data processor, the court found that the latter's needs take precedence. Users had previously been informed of these developments and have the option to object.

This ruling is legally binding, yet the involved parties retain the right to pursue their claims in a separate principal proceedings. Wolfgang Schuldzinski, the board member of the Consumer Protection Agency NRW, expressed disappointment over the decision, labeling the situation as highly problematic. He highlighted ongoing uncertainties regarding the legality of data use in this manner. Thomas Fuchs, the data protection officer for Hamburg, has initiated steps against the impending AI training, and the privacy organization Noyb has also called for a cessation of these activities. Alexander Rossnagel, the data protection officer for Hesse, urged users to promptly exercise their opt-out rights, while his counterpart in Brandenburg emphasized the responsibilities of fan page operators in this context.