Amazon was fined a record 746 million euros by the Luxembourg data protection authority, National Data Protection Commission (CNPD). According to the authority, Luxembourg-based Amazon Europe Core S.à rl, a US multi-European subsidiary, did not handle user data in accordance with the European Data Protection Regulation, General Data Protection Regulation (GDPR) – the authority’s decision was reported on July 16 By Amazon in a prospectus submitted to the US Stock Exchange after the release of its quarterly business report.
In addition to the standard penalty, the CNPD called on Amazon to put an immediate end to the breach, but the exact measures required by Luxembourg authorities were not detailed by the organization or in the e-commerce plurality.
Amazon’s press office said over the weekend that it is appealing the CNPD’s decision, which the company says imposed an “unmerited” and severely disproportionate penalty on the company.
Regarding the level of punishment The Wall Street Journal He notes that while the GDPR generally allows for a fine of up to 4% of the prior year’s sales for the company in question, in the current case, the company was penalized at a higher rate. Last year, Amazon in Luxembourg had annual sales of $21.3 billion, of which 4.2% was in US dollars.
This is not the first time that Amazon has had problems with European laws regarding the processing of user data. The European Commission’s competition authority launched an investigation last year in which it assumed that the company was able to take advantage of a wide range of statistics from companies selling on the German and French markets (third parties). Since Amazon also competes with these business partners, the panel considers the use of the data to be illegal.
However, the fines paid or payable for violations of the GDPR have so far been much smaller than those in the competition area. The French data protection authority keeps the record of sanctions in the European Union so far, which fined Google hundreds of millions of euros last December for the illegal use of trackers that display ads.
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