European Union hits Facebook parent Meta with record $1.3 billion fine over transfers of user data to U.S. File
| Photo Credit: AP
The European Union slapped Meta with a record $1.3 billion privateness fine on May 22 and ordered it to cease transferring user data throughout the Atlantic by October, the most recent salvo in a decade lengthy case sparked by U.S. cybersnooping fears.
The penalty fine of €1.2 billion euros from Ireland’s Data Protection Commission is the most important for the reason that EU’s strict data privateness regime took impact 5 years in the past, surpassing Amazon’s €746 million euro penalty in 2021 for data safety violations.
Also Read | EU draft guidelines suggest harder cybersecurity labelling guidelines
The Irish watchdog is Meta’s lead privateness regulator within the 27-nation bloc as a result of the Silicon Valley tech large’s European headquarters relies in Dublin.
Meta, which had beforehand warned that providers for its customers in Europe may very well be lower off, vowed to enchantment and ask courts to instantly put the choice on maintain.
“There is no immediate disruption to Facebook in Europe,” the corporate mentioned.
“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 and affairs, and chief authorized officer Jennifer Newstead mentioned in an announcement.
Also Read | Meta’s WhatsApp fined $5.95 million by lead EU privateness regulator
It’s yet one more twist in a authorized battle that started in 2013 when Austrian lawyer and privateness activist Max Schrems filed a grievance about Facebook’s dealing with of his data following former National Security Agency contractor Edward Snowden’s revelations about U.S. cybersnooping.
The saga has highlighted the conflict between Washington and Brussels over the variations between Europe’s strict view on data privateness and the comparatively lax regime within the U.S., which lacks a federal privateness legislation.
An settlement masking EU-U.S. data transfers often called the Privacy Shield was struck down in 2020 by the EU’s prime courtroom, which mentioned it didn’t do sufficient to shield residents from the U.S. Government’s digital prying.
That left one other device to govern data transfers — inventory authorized contracts. Irish regulators initially dominated that Meta did not want to be fined as a result of it was performing in good religion in utilizing them to transfer data throughout the Atlantic. But it was overruled by the EU’s prime panel of data privateness authorities final month, a call that the Irish watchdog confirmed on May 22.
Also Read | Privacy is determined by cybersecurity
Meanwhile, Brussels and Washington signed an settlement final yr on a reworked Privacy Shield that Meta may use, however the pact is awaiting a call from European officers on whether or not it adequately protects data privateness.
EU establishments have been reviewing the settlement, and the bloc’s lawmakers referred to as for enhancements in May, saying the safeguards aren’t sturdy sufficient.
Meta warned in its newest earnings report that with no authorized foundation for data transfers, it is going to be compelled to cease providing its services in Europe, “which would materially and adversely affect our business, financial condition, and results of operations”.
The social media firm may need to perform a pricey and complicated revamp of its operations if it is compelled to cease delivery user data throughout the Atlantic. Meta has a fleet of 21 data centres, in accordance to its web site, however 17 of them are within the United States. Three others are within the European nations of Denmark, Ireland and Sweden. Another is in Singapore.
Other social media giants are additionally dealing with stress over their data practices. TikTok has tried to soothe Western fears concerning the Chinese-owned quick video sharing app’s potential cybersecurity dangers with a $1.5 billion undertaking to retailer U.S. user data on Oracle servers.
