Data Dollars and Euro Cents

Data Dollars and Euro Cents

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  • Meta Platforms received a record €1.2 billion ($1.3 billion) privacy fine from the European Union. The company has been instructed to halt the transfer of users' data to the US due to failure in protecting personal information from American security services. The Irish Data Protection Commission stated that Facebook's data transfers did not adequately address the risks to individuals' rights and freedoms.
  • In addition to the hefty fine, surpassing the previous €746 million penalty given to by the EU, Meta Platforms has been granted a five-month period to halt any future transfer of personal data to the US. They have also been given six months to cease the unlawful processing and storage of transferred personal data from the EU in the US. 

Why it matters

Monday's ruling marks the latest development in an ongoing issue that has left Facebook and numerous other companies in a legal limbo. In 2020, the highest court of the European Union invalidated an agreement between the EU and the US that governed the transfer of data across the Atlantic due to concerns about the security of individuals' data once it reached US servers. The movement of substantial amounts of information, essential for various business operations such as sales, marketing, and payroll processing, meant that legal obstacles posed a threat to the smooth flow of commerce between the EU and the US.


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