Meta (formerly known as Facebook) has been issued a record-breaking fine of 1.2 billion euros ($1.3 billion) by the leading European Union privacy regulator for its mishandling of user data. Additionally, Meta has been given a five-month deadline to cease transferring users’ data to the United States.
The fine was imposed by the Data Protection Commissioner (DPC) in Ireland after Meta continued to transfer data despite a 2020 ruling by the EU court that invalidated a data transfer agreement between the EU and the United States. This penalty surpasses the previous record fine of 746 million euros imposed on Amazon.com Inc by Luxembourg in 2021. The dispute over where Meta (Facebook) stores its data began ten years ago when Austrian privacy advocate Max Schrems challenged the risk of U.S. surveillance following revelations by former U.S. National Security Agency contractor Edward Snowden.
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In response to the ruling, Meta stated that it intends to appeal, expressing disagreement with the “unjustified and unnecessary” fine, which it believes sets a dangerous precedent for other companies. Meta also plans to seek a stay of the suspension orders through the courts. The company reiterated its expectation that a new data transfer agreement enabling the safe transfer of EU citizens’ personal data to the United States will be fully implemented before it becomes necessary to suspend transfers. This implies that their previous warning about potential suspension of Facebook services in Europe would not materialize.
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Meta emphasized that without the ability to transfer data across borders, the internet could become fragmented into national or regional silos. The DPC had previously indicated in March that EU and U.S. officials were aiming to have the new data protection framework, agreed upon by Brussels and Washington in March 2022, ready by July. Previous data transfer agreements were invalidated by the European Court of Justice due to concerns about U.S. surveillance.
Schrems, the Austrian privacy campaigner, expressed skepticism about Meta’s reliance on the new agreement for future transfers, believing it to be an insufficient long-term solution.
