Beautiful Virgin Islands

Thursday, Feb 02, 2023

Meta faces record EU privacy fines

Meta faces record EU privacy fines

EU is finalizing imminent decisions on the legality of the US tech giant’s data-hungry business model.
This Christmas is bound to be an expensive one for U.S. tech giant Meta.

The Big Tech firm looks set to soon face a huge regulatory bill for all three of its social networks, Facebook, WhatsApp and Instagram. Europe's privacy regulator body, the European Data Protection Board, is expected to issue decisions on Monday that target the three platforms, after which Meta's lead regulator in Ireland will issue a final decision within a month.

The detail and possible value of the monetary penalty will remain under wraps until then, but the triplet of fines could add up to over €2 billion, financial statements by Meta indicate — setting a new record for the highest fines under the European Union's feared General Data Protection Regulation (GDPR) received by a single company in one go.

According to filings in Ireland, Meta has set aside €3 billion for EU privacy fines in 2022 and 2023. Its platform Instagram already got slapped with a €405 million fine in September for violating kids' privacy, and Facebook so far has accumulated €282 million in penalties for data breaches as well as a €60 million hit from the French. That leaves well over €2 billion earmarked by the firm for regulatory action.

That's a substantial hit for Meta, which announced last month it was laying off 11,000 employees globally amid lower sales and major costs linked to the firm's pivot to the metaverse.

Beyond hitting Meta's pocket, the three fines expected within weeks could also put a bomb under its broader business model. The decisions stem from complaints filed by Austrian activist Max Schrems accusing the company of failing to have proper legal grounds to process millions of Europeans' data. If the final decisions invalidate Meta’s argument that it’s processing data as part of a contract with users, the company would have to seek another legal basis for its data-fuelled ad targeting model.

The cases have also revealed deep fissures between Europe's data watchdogs.

Ireland's data protection commission largely backed Meta's argument that it could claim it needs data to fulfill a "contract" with its users to provide personalized ads, in its draft decision issued a year ago. But that reasoning has long put Ireland in the minority amongst its colleagues. The Norwegian data protection authority said the Irish interpretation would render European data protection law “pointless,” according to a document obtained by POLITICO last year. The Irish regulator was also alone in voting against EU guidelines that banned companies from using the contract legal basis to use data to target ads.

The three decisions are likely to lay into the Irish regulator's initial position and, more worryingly for Meta, amp up the pressure for the company to go scrambling for new legal ways to gather and process data on Europeans.

Meta also still faces an ongoing, high-profile probe into the company's transfers of Europeans' data to the U.S.

Meta declined to comment. It can still appeal the fines coming out of the coming decisions.
Newsletter

Related Articles

Beautiful Virgin Islands
Close
0:00
0:00
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
I have a dream, MLK inspiring speech
Almost 30% of professionals say they've tried ChatGPT at work
Aretha Franklin, Marvis Staples - Oh Happy Day
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
BVI Freedom Song
What is ChatGPT?
Billy Preston - You Can't Beat God Giving (Live)
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Tesla reported record profits and record revenues for 2022
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Hello Dolly
Who’s Threatening Israeli Democracy?
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
Federal Reserve Probes Goldman’s Consumer Business
Bob Marley - Get Up Stand Up
China's first population drop in six decades
Yes He Can
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
What A Friend We Have In Jesus
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Unforgettable
Tesla slashes prices globally by as much as 20 percent
Touch The Hem Of His Garment
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
The Lord's Prayer
After Failing To Pay Office Rent, Twitter May Sell User Names
THE GOD MOVEMENT...BEAUTIFUL BVI
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
Siyahamba
FIFA president questioned by prosecutors
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
Britain's Sunak breaks silence and admits using private healthcare
Ramblin' Rose
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Protoje - Who Knows ft. Chronixx
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Pressure - Virgin Islands Nice
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
Phil Wickham - House Of The Lord
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
My God Is Real (Yes, God Is Real)
TikTok CEO Plans to Meet European Union Regulators
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
UK chaos: Hong Kong emigrants duped by false prospectus
Louis Armstrong - When The Saints Go Marching In
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Kanye West Sunday Service - hallelujah, salvation, and glory
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Jonathan Nelson - I Believe (Island Medley
Will Canada ever become a real democracy?
From The Virgin Islands Sqad Up
Hong Kong property brokerages slash payrolls in choppy market
Common, John Legend - Glory
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
I have a dream, MLK inspiring speech
Coinbase to Pay $100 Million in Settlement With New York Regulator
Aretha Franklin, Marvis Staples - Oh Happy Day
×