Germany’s competition regulator has told Facebook to “substantially restrict” how it collects and combines data about its users unless they give it explicit consent.

The Bundeskartellamt said the social media giant has effectively abused its dominant position to gather users’ personal information via Facebook, its other apps (including Instagram and WhatsApp), and third parties by forcing consumers to give blanket approval to its terms and conditions without users really knowing the extent to which their data would be shared—or for what purpose.

Neil Hodge is a freelance business journalist and photographer based in Nottingham, United Kingdom. He writes on insurance and risk management, corporate governance, internal audit, compliance, and legal...