On March 18, Amazon faced a legal setback as it had to pay a record $812.4 million fine in a privacy breach case against the Luxembourg privacy regulator. The Luxembourg National Commission for Data Protection (CNPD) penalized Amazon for processing personal data, which is against EU privacy rules, known as the General Data Protection Regulation (GDPR). The administrative court also stated that its decision to ensure Amazon corrects its data handling issue will remain suspended while the multinational tech company considers appealing the ruling.
Amazon responded with the intention to appeal the court ruling on the grounds of subjective interpretation of the law. The company remarked about CNPD that it
"imposed an unprecedented fine based on subjective interpretations of the law about which they had not previously published any interpretive guidance".
Data Privacy Scrutiny
Amazon is not the only company facing scrutiny due to data privacy concerns. Apple’s HomePod and Google’s Nest devices are also facing public backlash for potentially breaching user’s privacy. The latest court ruling of Luxembourg has set a precedent for other tech companies, ensuring EU’s strict privacy law.
Disclaimer
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About the Author
Fatimah Misbah Hussain reports on the money behind AI and chips: Samsung raising foundry prices while losing share, Alphabet's first quarter of AI cash burn and the roughly $10 billion financing stack behind Korea's sovereign AI factory. US sanctions on crypto exchanges and X's new payouts for original posts are also part of her beat.
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