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Germany has banned Facebook from processing personal data of WhatsApp users, as the regulator considered the new terms of use for the messaging app illegal.

The decision follows a suit launched by the regulator in Hamburg after WhatsApp asked users to agree to the new terms or stop using the service, Reuters reports.

This decision is aimed at protecting the rights and freedoms of many millions of users who agree to the terms of use throughout Germany, said the regulator's spokesman Johannes Kaspar.

WhatsApp noted that the action of the Hamburg data protection authority is based on a fundamental misunderstanding of the purpose and consequences of its update and therefore lacks a legal basis. 

Since the claims of the Hamburg DPA are erroneous, this order will not affect the further rollout of the update, said a WhatsApp spokesperson.

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