Saudi Press

Saudi Arabia and the world
Friday, Mar 29, 2024

Meta: Facebook owner fined €1.2 billion for mishandling data

Meta: Facebook owner fined €1.2 billion for mishandling data

Facebook’s owner, Meta, has been fined €1.2 billion (£1 billion) for mishandling people’s data when transferring it between Europe and the United States.
Issued by Ireland’s Data Protection Commission (DPC), it is the largest fine imposed under the EU’s General Data Protection Regulation privacy law.

GDPR sets out rules companies must follow to transfer user data outside of the EU. Meta says it will appeal against the “unjustified and unnecessary” ruling.

At the crux of this decision is the use of standard contractual clauses (SCCs) to move European Union data to the US.

These legal contracts, prepared by the European Commission, contain safeguards to ensure personal data continues to be protected when transferred outside Europe.

But there are concerns these data flows still expose Europeans to the US’s weaker privacy laws — and US intelligence could access the data.

This decision does not affect Facebook in the UK. The Information Commissioner’s Office told the BBC that the decision “does not apply in the UK” but said it had “noted the decision and will review the details in due course”.

Most large companies have complex webs of data transfers - which can include email addresses, phone numbers and financial information - to overseas recipients, many of which depend on SCCs.

And Meta says their broad use makes the fine unfair.

Facebook President Nick Clegg said: “We are therefore disappointed to have been singled out when using the same legal mechanism as thousands of other companies looking to provide services in Europe.

“This decision is flawed, unjustified and sets a dangerous precedent for the countless other companies transferring data between the EU and US.”

But privacy groups have welcomed that precedent.

Caitlin Fennessy, of the International Association of Privacy Professionals, said: “The size of this record-breaking fine is matched by the significance of the signal it sends.

“Today’s decision signals that companies have a whole lot of risk on the table.”

It could make EU companies demand US partners stored data within Europe - or switch to domestic alternatives, she added.

In 2013, former US National Security Agency contractor Edward Snowden disclosed American authorities had repeatedly accessed people’s information via technology companies such as Facebook and Google.

And Austrian privacy campaigner Max Schrems filed a legal challenge against Facebook for failing to protect his privacy rights, setting off a decade-long battle over the legality of moving EU data to the US.

Europe’s highest court, the European Court of Justice (ECJ), has repeatedly said Washington has insufficient checks in place to protect Europeans’ information.

And in 2020, the ECJ, ruled an EU-to-US data transfer agreement invalid.

But the ECJ left the door open for companies to use SCCs, saying the transfer of data to any other third country was valid as long as it ensured an “adequate level of data protection”.

It is that test Meta has been found to have failed.

Asked about the €1.2 billion fine, Schrems said he was “happy to see this decision after 10 years of litigation” but it could have been much higher.

“Unless US surveillance laws get fixed, Meta will have to fundamentally restructure its systems,” he added.

Despite the record-breaking size of the fine, experts have said they think Meta’s privacy practices will not change.

“A billion-euro parking ticket is of no consequence to a company that earns many more billions by parking illegally,” Johnny Ryan, a senior fellow at the Irish Council for Civil Liberties.

The US recently updated its internal legal protections to give the EU greater assurances American intelligence agencies would follow new rules governing such data access.

In 2021, Amazon was fined for similarly flouting the EU’s privacy standard.

Ireland’s DPC has also fined WhatsApp, another Meta-owned business, for breaching stringent regulations relating to the transparency of data shared with its other subsidiaries.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×