Facebook parent Meta hit with record fine for transferring European user data to US

The penalty fine of 1.2 billion euros from Ireland's Data Protection Commission is the biggest since the EU's strict data privacy regime took effect five years ago, surpassing Amazon's 746 million euro penalty in 2021 for data protection violations.

Associated Press

May 22, 2023, 10:37 AM

Updated 361 days ago

Share:

Facebook parent Meta hit with record fine for transferring European user data to US
The European Union slapped Meta with a record $1.3 billion privacy fine Monday and ordered it to stop transferring user data across the Atlantic by October, the latest salvo in a decadelong case sparked by U.S. cybersnooping fears.
The penalty fine of 1.2 billion euros from Ireland's Data Protection Commission is the biggest since the EU's strict data privacy regime took effect five years ago, surpassing Amazon's 746 million euro penalty in 2021 for data protection violations.
The Irish watchdog is Meta's lead privacy regulator in the 27-nation bloc because the Silicon Valley tech giant's European headquarters is based in Dublin.
Meta, which had previously warned that services for its users in Europe could be cut off, vowed to appeal and ask courts to immediately put the decision on hold.
“There is no immediate disruption to Facebook in Europe,” the company said.
“This decision is flawed, unjustified and sets a dangerous precedent for the countless other companies transferring data between the EU and U.S.,” Nick Clegg, Meta's president of global and affairs, and Chief Legal Officer Jennifer Newstead said in a statement.
It's yet another twist in a legal battle that began in 2013 when Austrian lawyer and privacy activist Max Schrems filed a complaint about Facebook’s handling of his data following former National Security Agency contractor Edward Snowden’s revelations about U.S. cybersnooping.
The saga has highlighted the clash between Washington and Brussels over the differences between Europe's strict view on data privacy and the comparatively lax regime in the U.S., which lacks a federal privacy law.
An agreement covering EU-U.S. data transfers known as the Privacy Shield was struck down in 2020 by the EU's top court, which said it didn’t do enough to protect residents from the U.S. government's electronic prying.
That left another tool to govern data transfers — stock legal contracts. Irish regulators initially ruled that Meta didn't need to be fined because it was acting in good faith in using them to move data across the Atlantic. But it was overruled by the EU's top panel of data privacy authorities last month, a decision that the Irish watchdog confirmed Monday.
Meanwhile, Brussels and Washington signed an agreement last year on a reworked Privacy Shield that Meta could use, but the pact is awaiting a decision from European officials on whether it adequately protects data privacy.
EU institutions have been reviewing the agreement, and the bloc's lawmakers this month called for improvements, saying the safeguards aren't strong enough.
Meta warned in its latest earnings report that without a legal basis for data transfers, it will be forced to stop offering its products and services in Europe, “which would materially and adversely affect our business, financial condition, and results of operations.”
The social media company might have to carry out a costly and complex revamp of its operations if it's forced to stop shipping user data across the Atlantic. Meta has a fleet of 21 data centers, according to its website, but 17 of them are in the United States. Three others are in the European nations of Denmark, Ireland and Sweden. Another is in Singapore.
Other social media giants are facing pressure over their data practices. TikTok has tried to soothe Western fears about the Chinese-owned short video sharing app's potential cybersecurity risks with a $1.5 billion project to store U.S. user data on Oracle servers.


More from News 12
2:28
How did a Nassau County doctor overprescribe highly addictive pain pills, despite strict laws in place?

How did a Nassau County doctor overprescribe highly addictive pain pills, despite strict laws in place?

1:56
Mostly cloudy Saturday; sunshine returns this week

Mostly cloudy Saturday; sunshine returns this week

0:26
Principal: Student approached by van full of men in ski masks in Selden

Principal: Student approached by van full of men in ski masks in Selden

2:06
Homeowners asked to check home security video after string of Nassau County break-ins

Homeowners asked to check home security video after string of Nassau County break-ins

0:51
Plainview-Old Bethpage hosts basketball team from Israel impacted by Oct. 7 attacks

Plainview-Old Bethpage hosts basketball team from Israel impacted by Oct. 7 attacks

1:58
13th Annual Montauk Music Festival to take place this weekend

13th Annual Montauk Music Festival to take place this weekend

1:24
Nassau County high school seniors take part in aerial simulation exercise

Nassau County high school seniors take part in aerial simulation exercise

1:53
Toys for Tots make contribution to Promise of Hope Foundation to honor fallen Detective Jonathan Diller

Toys for Tots make contribution to Promise of Hope Foundation to honor fallen Detective Jonathan Diller

0:24
Police: Hempstead man exposed, touched himself inappropriately at Roosevelt Field Mall

Police: Hempstead man exposed, touched himself inappropriately at Roosevelt Field Mall

2:29
Museum of American Armor hosting 10th anniversary of World War II Encampment weekend

Museum of American Armor hosting 10th anniversary of World War II Encampment weekend

0:40
Town of Hempstead launches rain barrel pilot program in five town parks

Town of Hempstead launches rain barrel pilot program in five town parks

1:55
12-year-old prodigy set to become Malverne High School’s youngest graduate

12-year-old prodigy set to become Malverne High School’s youngest graduate

0:24
Police: 2 men arrested for stealing copper wire, burglarizing Jericho business

Police: 2 men arrested for stealing copper wire, burglarizing Jericho business

0:23
FDA approves first self-test for cervical cancer

FDA approves first self-test for cervical cancer

1:08
East End: Kick off party to the summer showcasing the beauty of the region

East End: Kick off party to the summer showcasing the beauty of the region

1:07
The East End: Calissa in Water Mill

The East End: Calissa in Water Mill

1:36
The Real Deal: How to navigate the buying, renting market in New York

The Real Deal: How to navigate the buying, renting market in New York

1:19
Nassau County doctor convicted of illegally prescribing around 93,000 mg of oxycodone to 1 patient

Nassau County doctor convicted of illegally prescribing around 93,000 mg of oxycodone to 1 patient

1:44
Massapequa couple latest to be charged in connection with Jan. 6 Capitol riot

Massapequa couple latest to be charged in connection with Jan. 6 Capitol riot

0:30
 Police: Deer Park teen charged after making threats, bringing BB gun to Frost Middle School

Police: Deer Park teen charged after making threats, bringing BB gun to Frost Middle School