Meta, the parent company of Facebook, has received a record fine of $1.3 billion (€1.2 billion) from European Union data regulators.
Additionally, the company has been instructed to cease the transfer of Facebook users’ data from the EU to the United States.
EU courts argue that such data transfers expose EU citizens to privacy breaches, citing concerns originating from 2013 when whistleblower Edward Snowden revealed US mass surveillance programmes.
The ruling was issued by Ireland’s Data Protection Commission (DPC), which stated that the existing legal framework for data transfers to the US fails to address the risks posed to the fundamental rights and freedoms of EU users of Facebook. This violation of the General Data Protection Regulation (GDPR) has resulted in a fine that surpasses the previous EU record of EUR 746 million imposed on Amazon in 2021 for similar privacy infringements.
In a statement, Meta said that it will appeal the ruling, including the “unjustified and unnecessary fine”, and seek a stay of the orders through the courts.
Data transfer to the US is crucial for Meta’s extensive advertising targeting activities, as it heavily relies on processing various personal data streams from its users.
In the past, the transfer of data was safeguarded by a transatlantic agreement called the Privacy Shield. However, this framework was invalidated in 2020 following a ruling by the European Union’s highest court, which determined that it failed to adequately protect data from being accessed by US surveillance programs.
In response to the prospect of being unable to transfer data to the US, Meta stated last year that it might have to consider shutting down Facebook and Instagram in the EU, a statement perceived by EU politicians as an apparent threat.
Meta said last month it expected a new pact facilitating the safe transfer of EU citizens’ personal data to the United States would be fully implemented before it has to suspend transfers. This implies that the company’s previous warning to suspend Facebook services in Europe would not come to pass.
