About Those Painful Fines
August 24, 2021
Never one to let pesky regulations get in the way of doing business, “Amazon Hit with Record $888M Fine Over GDPR Violations,” reports CNet. Even that eye-popping sum represents but a minor cost of doing business to the online retail giant. Luxembourg authorities levied the 746 million euro fine on July 16, saying Amazon violated the EU’s GDPR data protection laws. At issue is the way the company processes customer data. Citing reporting from Bloomberg, writer Katie Collins tells us:
“[The CNPD’s] into Amazon was based on a 2018 complaint by French privacy group La Quadrature du Net. The group says it represents the interests of thousands of Europeans to ensure their data isn’t used by big tech companies to manipulate their behavior for political or commercial purposes. It didn’t immediately respond to request for comment. Amazon is under growing scrutiny both at home and abroad over the way it uses customer data. Regulators are concerned that not only could the company’s data processing policies violate privacy protections for consumers while they’re shopping online, they might give the company an advantage over competitors operating within its marketplace. Meanwhile, Amazon is keen for customers to know that their data is safe, and unlike many GDPR fines, this one hasn’t been issued due to a data breach. ‘Maintaining the security of our customers’ information and their trust are top priorities,’ said an Amazon spokesman in a statement on Friday. ‘There has been no data breach, and no customer data has been exposed to any third party. These facts are undisputed.’”
Nice attempt at deflection, Amazon. A data breach is not the issue here, but rather willful disregard of EU privacy regulations. The Amazon spokesperson insists the fine is based on “subjective and untested interpretations” of the GDPR and that it is entirely out of proportion. Though it plans to appeal the fine, it is a price the company can easily pay.
To answer the question, will the fine have an impact? Nope, a monetary penalty is ineffective. Consider this: Russia Fines Google For Not Deleting Banned Content. How much? Three million rubles or about $40,000US. Facebook might be fined as much as $82,000 by the Russian bear.
Painful not.
Cynthia Murrell, August 25, 2021
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