Amazon faces potential EU privacy fine of $ 425 million

European Union privacy regulators have proposed fines of over $ 425 million to Co., Ltd.

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People familiar with the matter said it was part of a process that could result in the greatest penalties under Block’s privacy law.

People said the Luxembourg data protection commission, CNPD, has endorsed Amazon’s privacy practices and distributed a decision proposing fines to 26 other state authorities in the block. CNPD is Amazon’s leading privacy regulator in the EU, as Amazon is headquartered in the EU in the Grand Duchy.

The Luxembourg proceedings relate to allegations of violations of the European General Data Protection Regulation (GDPR) related to the collection and use of Amazon’s personal data and are not related to the cloud computing business Amazon Web Services. The problem said. The person refused to elaborate on a particular claim against Amazon.

An Amazon spokesman declined to comment. The company has previously stated that customer privacy is a priority and is compliant with the laws of every country in which it operates. A CNPD spokesman said regulators were not allowed to comment on individual cases.

It needs to be effectively agreed by other EU privacy regulators before the draft decision is finalized. This process can take months and can lead to substantive changes such as increased or decreased fines.

The fine proposed by Luxembourg is equivalent to about 2% of Amazon’s reported net profit of $ 21.3 billion in 2020 and 0.1% of sales of $ 386 billion. Under the GDPR, regulators can fine up to 4% of a company’s annual revenue.

Luxembourg regulators have made a small number of objections to the decision, including at least one who said fines should be higher, another person familiar with the matter said. Luxembourg can resolve the objection amicably or reject the objection for debate and voting among all EU privacy regulators of the European Data Protection Commission.

The EU’s new data privacy law, known as the GDPR, has created the first Bill of Rights on Consumer Privacy. Here’s what you need to know: (Released on August 8, 2018)

The draft decision, along with the scale of the fines, represents a new wave of privacy enforcement for major European tech companies as Silicon Valley giants are under increasing global scrutiny.

Irish privacy regulator leading Facebook’s GDPR enforcement Co., Ltd.

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Google and apple Co., Ltd.

Since their EU headquarters are in the country, they say they plan to draft a decision in about half a dozen privacy proceedings involving major tech companies this year.

An Irish decision circulated to other regulators alleges GDPR violations related to data sharing between Facebook’s social networks and the chat app WhatsApp. The draft decision recommends a fine of around € 30 to € 50 million, which is equivalent to about $ 37 to $ 61 million, according to people familiar with the matter.

Facebook representatives did not immediately respond to requests for comment. When asked about past incidents, the spokesman declined to comment.

Strengthening EU privacy is in parallel with strengthening antitrust laws, with European and US regulators filing multiple lawsuits against major tech companies. Last week, top UK and EU competitors announced a formal antitrust investigation into Facebook’s dating service and its classified advertising service Marketplace.

A Facebook spokesman said last week that the marketplace and dating service “operates in a highly competitive environment with many large existing companies.” We will continue to fully cooperate with the investigation and prove that there is no merit. “

When it comes to privacy, activists complain that Europe’s execution pace is too slow. Since the GDPR went into effect in 2018, according to law firm DLA Piper, the biggest penalty under the law is a € 50 million fine to Google from French privacy regulators.

Ireland, where many of the largest tech companies in the United States lead the EU’s enforcement, has been particularly criticized by activists and politicians for not making any further decisions. So far, authorities have made a final decision in one Big Tech case and fined Twitter € 450,000 in December.

In response to criticism, Helen Dixon, head of privacy regulators in Ireland, said technical proceedings are novel and companies must be entitled to due process to effectively respond to all allegations. It was.

Write to Sam Schechner (

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Amazon faces potential EU privacy fine of $ 425 million

Source link Amazon faces potential EU privacy fine of $ 425 million

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