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Meta, Facebook’s parent company, has been fined 1.2 billion euros ($1.3 billion) for violating the European Union’s data protection rules. The issue stems from Facebook’s handling of European user data, specifically how the company transferred this data from Europe to the U.S. In a report released by Ireland’s Data Protection Commission (DPC) on Monday, it was revealed that Facebook’s actions were in breach of the EU’s General Data Protection Regulation (GDPR) rules.
Privacy Shield Agreement Invalidated
Essentially, when Facebook collects personal data from its EU customers and sends it to the U.S., there is a risk that this data could be accessed by U.S. intelligence services. The Privacy Shield agreement, which allowed for the free transfer of EU user data to U.S. companies until 2020, was declared inadequate by the EU’s Court of Justice as it did not adequately protect EU users’ data from U.S. surveillance. Despite the invalidation of the Privacy Shield, Facebook continued to transfer EU user data, leading to the EU regulators launching an inquiry.
Penalties and Restrictions
With this hefty fine, Facebook now holds the record for the largest fine ever imposed by the EU, surpassing Amazon’s $886 million fine for a GDPR breach in 2021. Meta, the parent company, intends to appeal the decision. The DPC not only fined Facebook but also prohibited the company (excluding other Meta entities like Instagram) from transferring users’ personal data to the U.S. going forward. Facebook has five months to cease data transfers and six months to delete previously transferred data.
Meta had previously hinted at the possibility of shutting down Facebook and Instagram in Europe if it could no longer transfer user data to the U.S. However, this scenario may be avoided if the EU and U.S. can reach a new agreement on data transfers in the coming months.
