A file photo shows an illustration made with figurines set up in front of Facebook's homepage. AFP/Joel Sage
Schleswig-Holstein state's data protection body said Friday it will appeal the court decision. It argues the ban on
fake names breaches German privacy laws and European rules designed to protect free speech online.
The administrative court in northern German Schleswig argued in its ruling Thursday that German privacy laws weren't applicable because Facebook has its European headquarters in Ireland - which has less far-reaching rules.
The California-based company argues its real name policy protects users.
Germany's strict privacy rules have posed a legal headache for Facebook, Google and others in recent years, giving consumers significant rights to limit the way companies use their information.