Insufficient consumer protection in mobile apps:
Bundeskartellamt identifies problems and proposes possible solutions

The Bundeskartellamt has today presented the results of its sector inquiry into mobile apps to examine consumer rights.

Andreas Mundt, President of the Bundeskartellamt: “Apps on smartphones and tablets are used billions of times to communicate, shop, obtain information, plan a trip or even for gaming. In our inquiry we have found that in many cases there are serious shortcomings with regard to data protection. App users receive insufficient or no information about companies accessing their personal data and do not know who receives their data. There is a lack of intelligible information and clear and simple possibilities of control. This is in clear contradiction to what consumers want. App publishers, app stores and operating system operators need to contribute to more legal compliance and consumer friendliness in the use of mobile apps.”

The Bundeskartellamt thoroughly analysed and evaluated the following problem areas for mobile end devices run on the Android or iOS operating system:

• Lack of information about data being accessed when using apps: In the case of a large number of apps, users are not adequately informed of the extent to which third companies such as Facebook or Google obtain personal data and specifically what data are obtained from the use of apps. Neither the app descriptions in the app stores nor the privacy policies of the app publishers provide sufficient information on this aspect. Preferably, users should be able to search more selectively for consumer-friendly apps (e.g. without trackers or advertisements) via an improved app store search function.

  
  

• Lack of transparency about contractual partners: Consumers are not adequately informed about who they actually conclude a contract with when downloading an app. There is no clear guidance on whether the respective app store operator or app publisher is to be contacted for warranty claims. To some extent conditions of use, online help pages and presentations in app stores contradict one another in this respect.

  
  

• Lack of possibilities to control data processing: Consumers’ wishes for more control over the processing of their personal data are only rudimentarily addressed in iOS and Android operating system settings. In spite of some innovations in the area of data protection, there is still much room for improvement. Clear and comprehensive information must go hand in hand with simple setting options. This way consumers should be able to effectively deny access to their data via apps and delete all non-system relevant apps.

Andreas Mundt: “When selecting, downloading and using apps it is very difficult and very tedious for consumers to identify what personal data they are disclosing and who can use them. In many cases this information is not even available. Our inquiry clearly shows that app providers need to become more transparent and consumer-friendly. In this regard we should not only discuss new rules but also ways of effective enforcement.”

In October 2020 the Bundeskartellamt launched its Sector Inquiry into Mobile Apps based on its new competencies in the area of consumer protection, which it has held since mid-2017. These new competencies allow the authority to conduct investigations and identify problem areas. However, unlike in the area of competition law, the Bundeskartellamt does not have the possibility to terminate or penalise any violations of law in the area of consumer protection.

In the context of this sector inquiry the Bundeskartellamt commissioned the infas-Institut with a survey to identify the opinions and wishes of consumers in respect of apps. The presentation and marketing of apps were also tested on several iOS and Android devices of varying price categories. In addition, on the Bundeskartellamt’s behalf, the Institut für Technik und Journalismus, a co-operator of the website www.mobilsicher.de, examined the way in which data are transmitted by 32 Android apps.

The full report on the Sector Inquiry into Mobile Apps with numerous overviews, graphs and links (in German only) is available here.

In addition, the main content of the sector investigation is illustrated on the following slides:

• Mobile Apps – Inadequate consumer protection
  
  
  
  

• Tips for consumers for the use of apps on smartphones and tablets