Meta slapped with record $1.3 billion fine over EU-US data transfers

Mark Zuckerberg

Meta has been hit by a record-breaking fine of 1.2 billion euros ($1.3 billion) by the European Union, for breaking digital privacy rules by transferring the data of EU citizens to U.S. servers.

Stemming from a case created by Austrian privacy campaigner Max Schrems, Ireland's Data Protection Commission alleged that the legal framework for transferring data to the U.S. were a violation of GDPR, data protection law covering Europe.

The ruling, performed by the Data Protection Commission of Ireland, alleges the existing legal framework for data transfers from the EU to the U.S. "did not address the risks to the fundamental rights and freedoms" of Facebook users in Europe.

Previously, the European Court of Justice struck down a previous mechanism for transferring data legally, referred to as Privacy Shield, in 2020. The DPC says Meta is continuing to send the data despite the ruling's occurrence.

The fine of 1.2 billion euros is also accompanied by an order by the DPC to suspend "any future transfer of personal data to the US within a period of five months."

Meta's fine is also the largest related to GDPR breaches, far exceeding a 746 million euro fine against Amazon in 2021.

Meta President of Global Affairs Nick Cleg and Chief Legal Officer Jennifer Newstead said in a statement the company plans to appeal.

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8 Comments

sflagel

said about 10 months ago

Fair enough. EU citizens have the right to be subject to their laws, not the US's. That includes data.

chasm

said about 10 months ago

sflagel said:

Fair enough. EU citizens have the right to be subject to their laws, not the US's. That includes data.

You’re 100 percent right, but that fine needs at least an extra zero on it before Zuck will pay any attention to it. Meta made $5.7B profit in *the most recent quarter*, so a $1.3B fine every year or two will likely be seen as the cost of doing business.

Both the US and EU regulatory agencies need to start fining companies a hefty percentage of their *annual* revenue for ongoing violations. Once you start messing with a company’s profits, shareholders will put pressure on the execs to follow the law.

Calamander

said about 10 months ago

These regulations and their tyrannical enforcement look like they are for you, the EU citizen.

But actually, they're against you - they're just the government adding more tools to its tool belt to issue fines and bring corporations in line.

It's a power grab, all done under the disguise of serving the people.

The corrupt, unelected government of the EU only acts to perpetuate its own power.

Of course when they strike against Meta, everyone cheers - but when it turns out we can't have small independent businesses anymore because these government bureaucrats can use the law against any of them any time, we realize that this was always created to centralize power, to give more power to government, and to also - ironically - give the internet giants more power.

Facebook has 100M to fight this in the courts and another 100M to settle, or even more. No problem!

But small startups can be permanently shut down by these laws, and that's why they were in reality created in the first place.

avon b7

said about 10 months ago

Calamander said:

These regulations and their tyrannical enforcement look like they are for you, the EU citizen.
But actually, they're against you - they're just the government adding more tools to its tool belt to issue fines and bring corporations in line.

It's a power grab, all done under the disguise of serving the people.

The corrupt, unelected government of the EU only acts to perpetuate its own power.

Of course when they strike against Meta, everyone cheers - but when it turns out we can't have small independent businesses anymore because these government bureaucrats can use the law against any of them any time, we realize that this was always created to centralize power, to give more power to government, and to also - ironically - give the internet giants more power.

Facebook has 100M to fight this in the courts and another 100M to settle, or even more. No problem!

But small startups can be permanently shut down by these laws, and that's why they were in reality created in the first place.

The laws are there to protect our data. They are applicable universally and there is a site (can't remember where now) that keeps a running list of sanctions.

These mega-fines grab the attention but that list is full of private individuals too who have been fined 40€ or 100€ etc for different infractions.

It's a very complex situation but the EU approach, while 'strict' to a point, is also considered to be a very good shield for EU users and a model for other stabs at data protection around the world.

Meta will supposedly Appeal but if they haven't complied they will not get off the hook. If they persist and prefer to pay fines, it is very likely that legislation will be designed to deal with those cases specifically.

What we can't have is companies that think they can flout data protection legislation and get away with it.

chutzpah

said about 10 months ago

Calamander said:

These regulations and their tyrannical enforcement look like they are for you, the EU citizen.
But actually, they're against you - they're just the government adding more tools to its tool belt to issue fines and bring corporations in line.

It's a power grab, all done under the disguise of serving the people.

The corrupt, unelected government of the EU only acts to perpetuate its own power.

Of course when they strike against Meta, everyone cheers - but when it turns out we can't have small independent businesses anymore because these government bureaucrats can use the law against any of them any time, we realize that this was always created to centralize power, to give more power to government, and to also - ironically - give the internet giants more power.

Facebook has 100M to fight this in the courts and another 100M to settle, or even more. No problem!

But small startups can be permanently shut down by these laws, and that's why they were in reality created in the first place.

Utter nonsense.