Meta fined record $1.3 billion over personal data transfer

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Meta, the parent company of Facebook, faces a $1.3 billion fine over its alleged transferring of personal data from Europe to the U.S., Ireland’s Data Protection Commission announced Monday.

The commission told Meta Ireland it must “suspend any future transfer of personal data to the U.S.” within five months, according to the announcement. It says it also gave Meta six months to “bring its processing operations into compliance.”

Meta plans to appeal the fine, which is the biggest such penalty given by the European Union.

“Without the ability to transfer data across borders, the internet risks being carved up into national and regional silos, restricting the global economy and leaving citizens in different countries unable to access many of the shared services we have come to rely on,” Meta executives Nick Clegg and Jennifer Newstead said in an online response.

“This decision is flawed, unjustified and sets a dangerous precedent for the countless other companies transferring data between the EU and U.S.,” they said.

The commission’s decision relates specifically to Facebook. Meta is also the parent company of brands such as Instagram and WhatsApp.

“There is no immediate disruption to Facebook because the decision includes implementation periods that run until later this year,” Clegg and Newstead said. “We intend to appeal both the decision’s substance and its orders including the fine, and will seek a stay through the courts to pause the implementation deadlines.”

Monday’s decision surpasses the EU’s previous record fine of $806 million given to Amazon nearly two years ago.

Co-founded by Mark Zuckerberg in 2004, the technology company previously known as Facebook, Inc. rebranded as Meta in 2021.

Meta announced 11,000 layoffs in November and another 10,000 in March. In November, Zuckerberg said the company overinvested in its workforce when the COVID-19 pandemic pushed people to engage virtually.

“Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended,” Zuckerberg wrote at the time. “I did, too, so I made the decision to significantly increase our investments. Unfortunately, this did not play out the way I expected.”

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