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Meta Takes Legal Action Against Irish Regulator Over €251 Million Fine

Gavel on legal document in office setting.

Meta, the parent company of Facebook, has initiated legal proceedings against the Irish Data Protection Commission (DPC) in an effort to overturn a hefty fine of €251 million. This fine was imposed following a significant data breach in 2018 that compromised millions of user accounts. The legal challenge comes at a time when Meta is also making changes to its content moderation policies, which may further complicate its relationship with European regulators.

Key Takeaways

Background of the Fine

In September 2018, Meta reported a data breach that exposed sensitive information from around 29 million Facebook accounts globally, including about three million in the EU. Hackers exploited vulnerabilities in the platform’s code to gain access to user tokens, which allowed them to retrieve personal details such as:

The DPC’s decision to impose the €251 million fine was made after a thorough investigation into the incident. This fine is part of a broader trend of increasing penalties against major tech companies operating in Europe, particularly those headquartered in Ireland.

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Previous Penalties

This is not the first time Meta has faced financial repercussions from the DPC. In September 2022, the company was fined €91 million for storing user passwords in plain text. The cumulative fines levied by the DPC against various companies have now reached approximately €3.3 billion, although only €20 million has been collected so far, with many fines being contested in court.

Meta’s legal action against the DPC is significant as it highlights the ongoing tensions between large tech firms and European regulators. The company is seeking to overturn the fine, arguing that the DPC’s decision was unjustified. This legal battle could set a precedent for how data protection laws are enforced in the future.

Changes in Content Moderation Policies

In conjunction with its legal challenges, Meta has announced plans to shut down its third-party fact-checking program and lift restrictions on discussions surrounding sensitive topics such as immigration and gender identity. This shift in policy is expected to be implemented in the United States over the coming months, but it raises concerns about potential conflicts with EU regulations.

Implications for Irish Regulators

The DPC, which oversees Meta’s operations in Europe due to the company’s headquarters in Dublin, may face increased pressure to enhance its regulatory capabilities. Fianna Fáil MEP Billy Kelleher has emphasized the need for significant investment in personnel and technology to effectively manage the evolving landscape of social media regulation. He stated that the DPC must be equipped to handle complaints and violations efficiently, which may require an increase in budget and staffing.

As Meta navigates these legal and regulatory challenges, the outcome could have far-reaching implications for data protection practices and the accountability of tech giants in Europe. The situation remains fluid, and stakeholders are closely monitoring developments as they unfold.

Sources

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