EU fines Meta $1.3 billion for sending user data to the US.

The EU has fined Facebook owner Meta a record-breaking €1.2 billion ($1.3 billion) for data transfers. Officials discovered the social network's practice of transferring the data of EU citizens to US servers infringed on the crucial regulations governing digital privacy in the Union after a thorough investigation. Although Meta tried to address potential legal obstacles, the Data Protection Commission of Ireland stated that "these arrangements did not address the risks to the fundamental rights and freedoms of data subjects" in the Union.

This is the most recent installment in a story that has been going on for more than ten years about how Big Tech handles the personal data of EU citizens. Simply put, European privacy law is regarded as much stricter than American privacy law, particularly focusing on individual rights. However, large tech companies with worldwide servers can easily transfer data from one server to another. It opens the door to unnecessary surveillance by allowing data about EU citizens to be sent to the US, where strict privacy laws do not apply.

The EU has been working to address it, frequently prodded into action by Austrian attorney and privacy activist Max Schrems. The Court of Justice of the European Union agreed with Schrems that the current Safe Harbor provisions were insufficient. To tighten data controls when information was transferred between the two countries, the EU and the US collaborated to create the EU-US Privacy Shield. Naturally, the European Court of Justice invalidated that, which caused further wrangling as Facebook and others claimed that their businesses—for reasons that are known only to them—wouldn't operate without this data transfer.

Following the judgment, Meta has been given a five-month suspension on all upcoming data transfers involving EU citizens to the US. It will also have to work to "compliance" with the GDPR within the following six months, including any processing of EU citizens' data on US servers. However, it is likely to be challenged and put on hold due to a broader political agreement between the EU and the US to allow this data to flow safely.

The company will appeal the fine and the ruling, according to Sir Nick Clegg, president of global affairs at Meta, who wrote in his customary manner, claiming that Facebook acted in good faith. He continued, "Cross-border data flows are essential for many businesses, not mine. I'm disappointed to have been singled out when using the same legal mechanism as thousands of other companies looking to provide services in Europe."