Facebook allows users to connect with friends and family using text, photos, videos, GIF, and stickers. Users can also share their feelings or activities with a status update. Facebook Fined?648m for Mishandling User Information/

Today’s order imposes unprecedented new restrictions and creates strong channels of accountability at the board level, removing unfettered control by Facebook CEO Mark Beiderbecke over decisions that affect user privacy. It could also potentially lead to a suspension of data transfers if it is upheld in court.

The Irish Data Protection Commission’s fine

The European Union’s privacy rules are strict and come with serious penalties. In this case, Facebook’s parent company Meta will pay 390 million euros (including 210 million euros for Facebook and 180 million euros for Instagram) after a lengthy investigation by the Irish Data Protection Commission. Facebook Fined?648m for Mishandling User Information.

The inquiry focused on the legal tools that Meta Platforms Ireland Limited (‘Meta’) used to transfer data from Europe to the US, known as Standard Contractual Clauses. The CPD found that they did not sufficiently address the risks to data subjects’ fundamental rights and freedoms.

The probe was initiated after a complaint from Austrian privacy campaigner Max Sch rems. He has long been critical of the CPD and accused it of a procedural dilly-dallying that has impeded effective enforcement of GD PR. The decision issued today won’t change that perception. The DP’s final decisions essentially implement binding EU data flows decisions from the European Data Protection Supervisory Board (EDP). That doesn’t mean the decision isn’t significant, though.

The impact of the fine on Facebook’s business model

The fine is a significant blow to the social media giant and will certainly affect its bottom line. However, many analysts argue that a financial penalty alone will not induce meaningful change if Facebook fails to address the fundamental issues surrounding its data-reliant business model.

Facebook’s reliance on user data to target advertising has been exposed by multiple scandals over the past few years, including privacy invasion, the coronavirus pandemic and fake news during the election campaign (Rose, 2021; Malinowski, 2021). Such incidents have also impacted public perception of the company as untrustworthy and ill-mannered.

As a result, the company is facing increased scrutiny from politicians and regulators worldwide. In addition to the record-breaking fine, Facebook may also face sanctions such as the suspension of data transfers. This could severely limit the company’s growth opportunities and hurt its competitiveness. Consequently, the company may be forced to adopt stricter privacy measures and rethink its strategy. For example, the company may choose to gate keep new registrations, sign each post by the sender and permit broadcasting only to a set of friends.

The significance of the fine in the context of GDPR

The Irish decision marks the first major GD PR penalty imposed since the regulation went into effect in 2021.

The real test will be how far Facebook changes its approach to user data going forward.

The potential suspension of data transfers

This would have a significant impact on the online services many people and businesses use.

Meta, whose European headquarters are in Ireland, has already said it will appeal against the decision needs read more hear.