European Data Protection Board fined Meta a record-breaking € 1.2 billion for moving personal data of Facebook’s European users to US servers
The European Data Protection Board has slapped a record-breaking fine of € 1.2 billion (U.S. $ 1.3 billion) on Facebook’s owner – Meta for transferring the personal data of Facebook’s European Union (E.U.) users to servers in the United States (U.S.)
The European Data Protection Board said that the fine has been imposed following an inquiry into Facebook by the Irish Data Protection Commission, the chief regulator overseeing Meta’s operations in Europe.
The fine is the largest ever levied under Europe’s signature data privacy law, known as the General Data Protection Regulation (GDPR). Meta has also been ordered to cease the processing of personal data of European users in the United States within 6 months.
At the crux of this decision, is the use of Standard Contractual Clauses (SCCs) to move E.U. data to the U.S. 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 U.S.’s weaker privacy laws and that U.S. intelligence could access the data.
The Chairman of the European Data Protection Board – Andrea Jelinek said that Meta’s infringement is very serious since it concerns transfers that are systematic, repetitive and continuous.
Speaking on the occasion, Andrea said, “Facebook has millions of users in Europe, so the volume of personal data transferred is massive. The unprecedented fine is a strong signal to organizations that serious infringements have far-reaching consequences.”
Meta, which also owns WhatsApp and Instagram, said it would appeal the ruling, including the fine. There would be no immediate disruption to Facebook in Europe.
The company said the root of the issue stemmed from a “conflict of law” between the U.S. rules on access to data and the privacy rights of Europeans. The E.U. and the U.S. policymakers were on a clear path to resolving this conflict under a new transatlantic Data Privacy Framework.
The President of Global Affairs, Facebook – 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.”
He further said, “This decision is flawed, unjustified and sets a dangerous precedent for the countless other companies transferring data between the E.U. and U.S.”
Meta said that the ability for data to be transferred across borders is fundamental to how the global open internet works. Thousands of businesses and other organizations rely on the ability to transfer data between the E.U. and the U.S. in order to operate and provide services that people use every day.
