European Union (EU) could impose a hefty privacy fine on Meta over the transfer of Facebook’s EU users’ data to US servers, Reuters reported, citing sources.
The US technology giant will likely receive a fine for not complying with a top EU court’s warning.
According to the sources, the fine is anticipated to be more than Amazon’s record penalty of $887m.
Under the guidance of Ireland’s Data Protection Commissioner (DPC) Helen Dixon, EU regulators have been in the process of finalising a curb on the legal mechanism employed by Facebook to transfer data of European users.
This measure is prompted by concerns regarding potential access to the information by US intelligence agencies.
In April, they stated that the Irish DPC had one month to issue a decision halting Facebook’s transatlantic transfer of data. The ban might be in effect soon.
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Meta refused to comment, while requests for comment from the European Commission and the Irish DPC were not immediately answered.
In 2020, a data transfer agreement between the EU and the US was declared unconstitutional by Europe’s top court, citing privacy concerns.
Last year, Meta issued a warning, stating that it might be forced to halt Facebook services in Europe if a decision banned the mechanism through which it transfers data from Europe to the US.
Last week, it was reported that the EU cybersecurity agency is drafting a new, more stringent measure requiring cloud service providers to store all their data within the EU.