Meta Platforms Inc (NASDAQ:META) is facing a record European Union privacy fine for failing to comply with a warning by a top EU court. The penalty is expected to be higher than the previous record 746 million euros ($821.20 million) fine for Amazon.com Inc (NASDAQ:AMZN).
The EU regulators led by Ireland’s Data Protection Commissioner Helen Dixon have been finalising a ban on the legal tool used by Facebook to transfer European user data because of concerns U.S. intelligence agencies could access the information. In April, they said the Irish DPC had one month to make an order blocking Facebook’s transatlantic data flows.
Meta last year warned that an order to ban the mechanism it uses to transfer data from Europe to the United States could force it to suspend Facebook services in Europe. The ban could be in place by mid-May.
The record fine is a reminder of the importance of data privacy and the need for companies to comply with the EU’s data protection laws. Companies must ensure that they are taking all necessary steps to protect user data and comply with the EU’s data protection regulations.