Amazon received a fine of 746 million euros in Luxembourg for breaching the new European regulation on the protection of users’ private data (GDPR), the highest financial sanction imposed so far under this regulation.
At the origin of this fine is the association for the defense of freedoms La Quadrature du Net, which filed five complaints with the French body in charge of ensuring personal data, Cnil, against Amazon, Apple, Google, Facebook and Microsoft for the May 2018, after the GDPR regulation went into effect.
Amazon is based in Luxembourg, so the CNIL sent the file there.
The firm was fined in mid-July by the Luxembourg Data Protection Commission (CNPD), but the sanction was known this Friday in an Amazon stock exchange document.
The Commission “affirms that Amazon’s data processing did not comply with the data protection regulations of the European Union,” the US corporation pointed out in this stock exchange document.
Jeff Bezos, founder of Amazon. AP Photo
This conviction is “unfounded”, the group also reacted in that text, after which it maintained in a separate statement that it intends to “appeal” the ruling.
“There was no data leak, and customer data was not disclosed to any third party, “Amazon added.
Amazon had already been condemned by the French equivalent of the CNPD, Cnil, at the end of 2020, to pay a fine of 35 million euros for non-compliance with the legislation on cookies, advertising tracers.
Subsequently, another American giant, Google, was also fined 100 million euros.
They are regularly criticized for the way they use personal data of its users.
How is the rule that broke
Amazon violated a personal data rule. Photo EFE
Brussels tried to bring order to the European jurisdiction by imposing in 2018 its General Data Protection Regulation (GDPR), which has established itself as a world benchmark.
Companies must seek the consent of citizens when requesting their personal data, inform them of the use that will be made of that information and allow them to delete the data, under penalty of heavy fines.
According to the new European regulations on digital services, platforms will no longer be able to use the data collected through various services to target a user against their will. They must also provide client companies with access to the data they generate.
Outside the European Union, the US courts imposed a $ 5 billion fine on Facebook in 2020 for failing to protect users’ personal data.
The last report of the European Commission of June 2020 on the implementation of the new regulation reported some 785 fines issued by 22 data protection entities in the EU between May 25, 2018 and November 30, 2019.
THE European Union sanctioned Amazon. Reuters photo
The amounts are generally much lower than the fine reported by Amazon.
Consulted by the AFP, the CNPD stated that “is not authorized to comment on individual cases“, although it confirmed having issued a decision on July 15 on Amazon linked to the regulation on Internet data.
“This historic sanction strikes at the heart of the predatory system of the GAFAM (This is how the companies Google, Apple, Facebook, Amazon and Microsoft are known) and should be applauded, “La Quadrature du Net reacted in a statement sent to AFP.
Amazon, which presented its quarterly results on Wednesday, fell more than 7% on the Wall Street stock market this Friday at midday.
The online commerce and internet services firm obtained 7,800 million dollars of net profit in the second quarter of the year, 48% more than in the same period of last year, on a turnover that stood at 113,000 million dollars for that period.