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23-05-2023
NEW YORK: Facebook’s owner, Meta, has been fined €1.2bn (£1bn) for mishandling people’s data when transferring it between Europe and the United States.
Issued by Ireland’s Data Protection Commission, it is the largest fine imposed under the EU’s General Data Protection Regulation privacy law.
GDPR rules require companies to seek people’s consent before using their personal data.
Meta says it will appeal against the “unjustified and unnecessary” ruling.
At the crux of this decision is the use of standard contractual clauses (SCCs) to move EU data to the US.
These legal contracts, prepared by the European Commission, contain safeguards to ensure personal data continues to be protected when transferred outside Europe but there are concerns these data flows still expose Europeans to the US’s weaker privacy laws and US intelligence could access the data.
‘Dangerous precedent’
Most large companies have complex webs of data transfers – which can include email addresses, phone numbers and financial information -to overseas recipients, many of which depend on SCCs and Meta says their broad use makes the fine unfair.
Facebook president Nick Clegg said: “We are therefore disappointed to have been singled out when using the same legal mechanism as thousands of other companies looking to provide services in Europe.
“This decision is flawed, unjustified and sets a dangerous precedent for the countless other companies transferring data between the EU and US.”
Meta workers are bracing for thousands of additional layoffs as the embattled social media firm continues to cut costs.
A new round of layoffs began on Wednesday, according to a report from CNBC that was confirmed by Meta. The company will cull 4,000 jobs immediately as part of a larger plan to cut 10,000 jobs announced earlier this year, focusing largely on technical roles.
Chief executive Mark Zuckerberg said the layoffs come as part of the company’s “year of efficiency”, a plan to cut costs as Meta struggles to monetize its ambitious virtual reality venture, the metaverse.
The company reported a peak of 87,000 employees globally in 2022, after a hiring spree that escalated after the Covid pandemic sent online activity booming. (Int’l Monitoring Desk)
