If you weren't doing business with Facebook how would they be able to tag you?
Unless they've changed it recently, it's possible to use any name as a tag regardless of whether that individual is on Facebook.
I know this because pictures of long-dead relatives posted by family members are tagged.
Perhaps not so much about tagging the photo, but a) uploading a photo of me or b) giving facebook my email address (yes, thats common practice).
That is your friends passing your info along without your consent, not Facebook breaking the law.
In case of the email address: I think facebook is violating german law by storing my personal information which I'd consider private. (I am not sure if they still do that.)