Meta hit with record-breaking $1.3 billion fine over Facebook data transfers to the US

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Meta hit with record-breaking $1.3 billion fine over Facebook data transfers to the US
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The case stems back to Edward Snowden’s revelations about US mass surveillance

Previously, these data transfers were protected by a transatlantic pact known as the Privacy Shield. But this framework wasafter the EU’s top court found that it did not protect data from being scraped by US surveillance programs. This ruling was given in response to a claim by Austrian lawyer Max Schrems, whose legal battle against Facebook dates back to 2013 and the original Snowden revelations of US surveillance.

Although Meta has now been ordered to stop these data transfers, there are a number of caveats that benefit the US social media giant. First, the ruling only applies to data from Facebook, not other Meta companies like Instagram and WhatsApp. Second, there’s a five-month grace period before Meta has to stop future transfers, and a six-month deadline to stop holding current data in the US.

. “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.”written by Meta’s president for global affairs, Nick Clegg, and the company’s chief legal officer, Jennifer Newstead. The company stressed that it’s only one of “thousands” of companies that use similar legal frameworks to transfer data.

“We are appealing these decisions and will immediately seek a stay with the courts who can pause the implementation deadlines, given the harm that these orders would cause, including to the millions of people who use Facebook every day,” write Clegg and Newstead. Schrems predicts that Meta’s difficulties here are not over. He thinks any legal appeal of today’s decision by the company will be unsuccessfulthat the forthcoming EU-US data transfer protocol still won’t satisfy the EU’s privacy regulations in court. “Meta plans to rely on the new deal for transfers going forward, but this is likely not a permanent fix,” said Schrems. “Unless US surveillance laws gets fixed, Meta will likely have to keep EU data in the EU.

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