According to two persons with knowledge of the situation, Meta Platforms Inc. (META.O), will likely be subject to a record-setting privacy penalties from the European Union as a result of failing to comply with a warning issued by a leading EU court about the transfer of data pertaining to Facebook’s EU users to servers located in the United States.
According to the reports, the penalties would be greater than the previous record of 746 million euros, which is equivalent to $821.20 million. This was set by Amazon.com Inc. (AMZN.O).
The Irish Data Protection Commission (DPC) and the European Commission did not immediately reply to Reuters’ requests for comment; however, Meta declined to comment.
Because of worries that American spy services would get access to the information, authorities from the European Union, lead by Ireland’s Data Protection Commissioner Helen Dixon, are in the process of finalizing a ban on the legal mechanism that Facebook uses to transfer user data from European users.
They stated in April that the Irish DPC had one month to issue an order that would prevent Facebook’s transatlantic data transfers. A possible implementation date for the ban is the middle of May.
In the year 2020, the highest court in Europe came to the conclusion that an EU-U.S. data transfer agreement was unlawful, citing worries about spying.
The previous year, Meta issued a warning that it may be forced to halt Facebook services in Europe if an order is issued to restrict the method that it use to transmit data from Europe to the United States.
($1 = 0.9084 euros)