EU fines Facebook $1.3 billion for privacy violations

EU fines Facebook $1.3 billion for privacy violations

The European Union fined Meta $1.3 billion on Monday saying Facebook’s mum or dad firm broke the bloc’s legal guidelines by transferring E.U. residents’ consumer information to the United States. The Irish Data Protection Commission, which handed down the order, stated the transfers violated the E.U.’s General Data Protection Regulation (GDPR). Meta’s European headquarters are in Dublin.

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This is the most important GDPR advantageous ever handed down, surpassing the earlier document of $887 million towards Amazon in 2021. The ruling provides Meta 5 months to place in place measures to halt future transfers of private information to the United States and 6 months to cease “the unlawful processing, including storage, in the US of personal data of EU/EEA users transferred in violation of the GDPR.”

Why we care. If the ruling is put in place Facebook must delete an enormous quantity of knowledge and restructure its IT techniques at a really basic stage. It additionally would have huge implications for any firm transferring information between the 2 areas.

The finest hope for staying the ruling is a brand new information switch treaty between the U.S. and E.U.

Until 2020, these transfers had been protected by the Privacy Shield treaty between the 2 governments. That 12 months the E.U.’s highest courtroom invalidated the treaty by ruling it didn’t sufficiently shield E.U. residents’ information from American spy companies. 

Negotiations have been underway for the reason that excessive courtroom’s ruling. Last 12 months, President Biden and Ursula von der Leyen, the president of the European Union, introduced the outlines of a deal, however the particulars are nonetheless being hammered out. No doubt Monday’s determination will enhance the stress on the U.S. to get it executed. However, the complexity of the problems makes it troublesome to maneuver rapidly.

By the numbers. May 25 would be the fifth anniversary of GDPR, and Privacy Affairs has been monitoring the fines – all 1,701 of them, for a grand whole of over $4 billion:

  • Meta accounts for over 50% of all GDPR fines – the corporate has amassed $2.5 billion in penalties.
  • Meta has been fined seven occasions – together with 4 simply in 2022.
  • By comparability, Amazon and Google have mixed for greater than $800 million in GDPR fines.

Only Facebook. The determination applies solely to Facebook and never different Meta-owned platforms equivalent to Instagram and WhatsApp.

The firm stated it plans to attraction.

“This decision is flawed, unjustified and sets a dangerous precedent for the countless other companies transferring data between the EU and U.S.,” Nick Clegg, Meta’s president of world affairs, and Jennifer Newstead, its chief authorized officer, said in a statement.

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