EU data regulator fines Meta record-breaking $1.3 billion: Here's why
Meta has been slapped with the biggest fine under Europe's data protection regime. The Irish Data Protection Commission (DPC) fined the tech giant a whopping $1.3 billion for violating the European Union (EU) privacy rulebook. The regulator ordered Meta to stop transferring Facebook data of EU citizens to the US. This is the fifth fine imposed by the EU on Meta in two years.
Meta didn't address risks to rights of EU users: DPC
The Irish DPC found Meta in violation of the General Data Protection Regulation (GDPR) norms. It said the company "did not address the risks to fundamental rights and freedoms" of Facebook's European users while transferring data to the US. The DPC gave Meta five months to halt any future data transfers and six months to stop processing and storing EU data in the US.
Europe's top court struck down data transfer agreement in 2020
The ruling of the Irish DPC comes in the backdrop of the European Court of Justice's 2020 judgment that struck down the Privacy Shield agreement. The agreement protected the transatlantic transfer of data from Europe to the US by companies like Meta. The judgment also tightened the requirements for using standard contractual clauses (SCC), another tool used by companies to transfer data.
Complaint against Facebook stems from Edward Snowden's revelations
The fine against Meta is the result of a decade-long legal battle by Austrian lawyer Max Schrems. The complaint stems back to US National Security Agency (NSA) whistleblower Edward Snowden's revelations about mass surveillance programs by the US.
Meta depends on data transfer for targeted advertising
The privacy watchdog's ruling will affect Meta's ad revenue. The company depends on transferring data to the US for targeted advertising. Last year, the tech giant threatened to leave Europe if the continent decided to stop transatlantic data transfer. And the EU took this as a threat. It needs to be seen what Meta will do next to address the concerns.
'Decision sets dangerous precedent for companies transferring data between US-EU'
"This decision is flawed, unjustified and sets a dangerous precedent for the countless other companies transferring data between the EU and the US," said Nick Clegg, Meta's president of global affairs. He said the company would appeal the decision and "seek a stay with the courts who can pause the implementation deadlines." The order will harm millions of Facebook users, he added.
