Today the European Data Protection Board (EDPB) announced that Meta has been fined €1.2 billion (close to $1.3 billion) — which the Board confirmed is the largest fine ever issued under the bloc’s General Data Protection Regulation (GDPR). (The prior record goes to Amazon which was stung for $887 million for misusing customers data for ad targeting back in 2021.)
Meta’s sanction is for breaching conditions set out in the pan-EU regulation governing transfers of personal data to so-called third countries (in this case the US) without ensuring adequate protections for people’s information.
European judges have previously found U.S. surveillance practices to conflict with EU privacy rights.
The decision emerging out of the Irish DPC flows from a complaint made against Facebook’s Irish subsidiary almost a decade ago, by privacy campaigner Max Schrems — who has been a vocal critic of Meta’s lead data protection regulator in the EU, accusing the Irish privacy regulator of taking an intentionally long and winding path in order to frustrate effective enforcement of the bloc’s rulebook.
On the substance of his complaint, Schrems argues that the only sure-fire way to fix the EU-U.S. data flows doom loop is for the U.S. to grasp the nettle and reform its surveillance practices.
Responding to today’s order in a statement (via his privacy rights not-for-profit, noyb), he said: “We are happy to see this decision after ten years of litigation. The fine could have been much higher, given that the maximum fine is more than 4 billion and Meta has knowingly broken the law to make a profit for ten years. Unless US surveillance laws get fixed, Meta will have to fundamentally restructure its systems.”
This suggests the Irish regulator is routinely under-enforcing the GDPR on the most powerful digital platforms and doing so in a way that creates additional problems for efficient functioning of the regulation since it strings out the enforcement process. (In the Facebook data flows case, for example, objections were raised to the DPC’s draft decision last August — so it’s taken some nine months to get from that draft to a final decision and suspension order now.) And, well, if you string enforcement out for long enough you may allow enough time for the goalposts to be moved politically that enforcement never actually needs to happen. Which, while demonstrably convenient for data-mining tech giants like Meta, does make a mockery of citizens’ fundamental rights.
As noted above, with today’s decision, the DPC is actually implementing a binding decision taken by the EDPB last month in order to settle ongoing disagreement over Ireland’s draft decision — so much of the substance of what’s being ordered on Meta today comes, not from Dublin, but from the bloc’s supervisor body for privacy regulators.
n further public remarks today, Schrems once again hit out at the DPC’s approach — accusing the regulator of essentially working to thwart enforcement of the GDPR. “It took us ten years of litigation against the Irish DPC to get to this result. We had to bring three procedures against the DPC and risked millions of procedural costs. The Irish regulator has done everything to avoid this decision but was consistently overturned by the European Courts and institutions. It is kind of absurd that the record fine will go to Ireland — the EU Member State that did everything to ensure that this fine is not issued,” he said.
Earlier reports have suggested the European Commission could adopt the new EU-U.S. data deal in July, although it has declined to provide a date for this since it says multiple stakeholders are involved in the process.
Such a timeline would mean Meta gets a new escape hatch to avoid having to suspend Facebook’s service in the EU; and can keep relying on this high level mechanism so long as it is stands.
If that’s how the next section of this torturous complaint saga plays out it will mean that a case against Facebook’s illegal data transfers which dates back almost ten years at this point will, once again, be left twisting in the wind — raising questions about whether it’s really possible for Europeans to exercise legal rights set out in the GDPR? (And, indeed, whether deep-pocketed tech giants, whose ranks are packed with well-paid lawyers and lobbyists, can be regulated at all?)
Analysis on five years of the GDPR, put out earlier this month by the Irish Council for Civil Liberties (ICCL), dubs the enforcement situation a “crisis” — warning: “Europe’s failure to enforce the GDPR exposes everyone to acute hazard in the digital age and fingering Ireland’s DPA as a leading cause of enforcement failure against Big Tech.”
And the ICCL points the finger of blame squarely at Ireland’s DPC.
“Ireland continues to be the bottleneck of enforcement: It delivers few draft decisions on major cross-border cases, and when it does eventually do so other European enforcers routinely vote by majority to force it to take tougher enforcement action,” the report argues — before pointing out that: “Uniquely, 75% of Ireland’s GDPR investigation decisions in major EU cases were overruled by majority vote of its European counterparts at the EDPB, who demand tougher enforcement action.”
The ICCL also highlights that nearly all (87%) of cross-border GDPR complaints to Ireland repeatedly involve the same handful of Big Tech companies: Google, Meta (Facebook, Instagram, WhatsApp), Apple, TikTok, and Microsoft. But says many complaints against these tech giants never even get a full investigation — thereby depriving complaints of the ability to exercise their rights.
The analysis points out that the Irish DPC chooses “amicable resolution” to conclude the vast majority (83%) of cross-border complaints it receives (citing the oversight body’s own statistics) — further noting: “Using amicable resolution for repeat offenders, or for matters likely to impact many people, contravenes European Data Protection Board guidelines.”
The reality is a patchwork of problems frustrate effective enforcement across the bloc as you might expect with decentralized oversight structure which factors in linguistic and culture differences across 27 Member States and varying opinions on how best to approach oversight atop big (and very personal) concepts like privacy which may mean very different things to different people.
Schrems’ privacy rights not-for-profit, noyb, has been collating information on this patchwork of GDPR enforcement issues — which include things like under-resourcing of smaller agencies and a general lack of in-house expertise to deal with digital issues; transparency problems and information blackholes for complainants; cooperation issues and legal barriers frustrating cross-border complaints; and all sorts of ‘creative’ interpretations of complaints “handling” — meaning nothing being done about a complaint still remains a common outcome — to name just a few of the issues it’s encountered.
Source: Meta ordered to suspend Facebook EU data flows as it’s hit with record €1.2BN privacy fine under GDPR | TechCrunch
The article contains the history of the court cases Schrems had to enter to get the Ireland and the EU to do anything about data sharing problems – it’s an interesting read.