According to foreign media reports,The Hungarian competition authority said on Friday that Facebook misled Hungarian users by claiming that its services were free, resulting in a fine of nearly $4 million (about 1.2 billion forints).Hungarian authorities say it is the biggest ticket ever issued to protect consumers.
According to the Hungarian competition authority, Facebook posted "free, anyone can join" on its home page and help center, claiming its services were free. Facebook says users don't pay anything, but they make money for the company by collecting and using detailed data, such as consumer preferences, interests and habits.
The agency added that using the information, Facebook sold advertising opportunities to its customers, which were seen by consumers by inserting them into their Facebook posts. According to the agency, the notice about free use of Facebook "distracts consumers from the compensation they provide to the company", that is, the extent and scope of data they provide and its consequences.
The agency said it calculated the penalty not only based on Facebook Ireland Ltd.'s advertising revenue in Hungary, but also taking into account that during the survey, the company changed its slogan on its start page around the world regarding the free nature of the service, as well as the content of the help center.