Meta Platforms Inc, the parent company of Facebook, is on the verge of receiving a record-breaking privacy fine from the European Union. The fine is a consequence of Meta's failure to adhere to a top EU court's warning regarding transferring European Facebook users' data to U.S. servers, as stated by two sources privy to the situation.
Record-Breaking Fine Surpasses Amazon's Penalty
The forthcoming fine is expected to surpass the previous record of 746 million euros ($821.20 million), which was levied on Amazon.com Inc. The specific figures in Meta's case are yet to be released.
Meta's Silence and EU Regulators' Moves
Despite the impending penalty, Meta has refrained from commenting on the matter. Meanwhile, the Irish Data Protection Commission (DPC) and the European Commission have yet to respond to requests for comments from news outlets immediately.
Banning Facebook's Data Transfer Mechanism
EU regulators spearheaded the case, including Ireland's Data Protection Commissioner Helen Dixon. They aim to finalize a ban on the legal tool Facebook utilizes to transfer European user data. This decision is driven by fears that U.S. intelligence agencies may have access to this transferred data.
Timeframe for Ban and Precedent Legal Ruling
In April, regulators indicated that the Irish DPC had one month to enforce an order to halt Facebook's transatlantic data flows. As such, a ban could be operational by mid-May. The roots of this move trace back to 2020 when Europe's highest court deemed an EU-U.S. data transfer agreement invalid due to surveillance concerns.
Potential Impact on Facebook Services in Europe
Meta has previously warned that any ban on its data transfer mechanism could suspend Facebook services in Europe. This indicates the severe implications the decision could have on Meta's operations and regional users.
