03/02/2020
CG v Facebook Ireland Ltd & Anor [2016] NICA 54 (21 December 2016)
services concerned. The concept of establishment extended to any real and effective activity, even a
minimal one, exercised through stable arrangements.
[84] The court noted that Weltimmo clearly pursued a real and effective activity in Hungary through
its website. It had a representative in Hungary who had sought to negotiate a settlement of unpaid
debts with the advertisers. It had a bank account in Hungary. It had an address for the management
of its everyday business affairs in Hungary. The court concluded that that was sufficient to
constitute an establishment. If those matters were proved Weltimmo was established in Hungary as
that was sufficient to prove that the processing of personal data was carried out in the context of the
activities of the establishment.
[85] We have already discussed at paragraph [73] the circumstances in which the data protection
issue emerged before the learned trial judge. It is, however, not clear how the issue developed before
him. Although it appears that Google Spain may have been cited to him there is no discussion of it
in that part of the judgment dealing with the establishment issue. He could not, of course, have
considered Weltimmo since neither the Advocate General’'s opinion nor the court’'s decision were
published prior to the delivery of judgment. We simply do not know what legal principles the learned
trial judge applied in coming to his determination that Facebook was not established in the United
Kingdom.
[86] In seeking to support the judge’'s conclusion Mr White relied first upon the line of authority set
out in Murray v Royal County Down Golf Club [2005] NICA 52 that where the only matter for
decision is whether the judge has come to a right conclusion on the facts the court should not
interfere unless he has not taken all the circumstances into consideration or has misapprehended
the evidence or drawn an inference which there is no evidence to support. The difficulty with that
submission is that the case law to which we have referred sets out how the court should determine
whether the data controller is established in this jurisdiction and whether the data are processed in
the context of that establishment. The judge made no reference to that case law. The determination
of this issue is not a pure question of fact and in the absence of any consideration of the authorities
by the judge we are obliged to consider them on appeal.
[87] Secondly, the first appellant submitted that the mere fact that the Facebook service was
accessible in the UK did not mean that it was established here. We agree. Recital 19 of the eCommerce Directive reinforces that point. Thirdly, Mr White relied upon Richardson v Facebook
and Google (UK) Ltd[2015] EWHC 3154 (QB). In that case Warby J upheld the Master’'s Order
striking out a libel claim against Facebook (UK) Limited based on publications on the Facebook
Service on the ground, inter alia, that Facebook (UK) Limited was not the entity responsible for
hosting or controlling the Facebook Service. That is not, of course, the issue in this case and Warby
J expressly left open at paragraph [59] the conclusion that the data processing activities of Facebook
undertaken in England and Wales were carried out in the context of advertising and other activities
by Facebook (UK) Ltd so that they were subject to English data protection law. This case is,
therefore, of no assistance to the first appellant.
[88] The principal argument advanced by Facebook was that it was established in a member state of
the EU, Ireland, and was regulated in terms of data protection by the domestic law of that member
state which implemented the Data Protection Directive. It was not regulated by the domestic law of
other member states from which its service was accessible. The Data Protection Directive emphasises
the objective of an internal market and free cross-border flow of data between member states. The
nationality or place of residence of the data subject, the place where the data processing took place
and the place of which the service was accessible were not relevant to the location of the
establishment. Mr White accepted, however, that the data controller may be established in a number
of member states and be subject to the data protection laws within those member states although he
noted the risk of inconsistent approaches in different member states.
[89] On behalf of Facebook it was submitted that the decision in Google Spain was motivated by the
particular circumstances of that case. The court was asked to hold that EU residents did not benefit
from data protection rights when they dealt with the provider of Internet services located in the
United States. Accordingly it was submitted that the court adopted an expansive approach to the
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