As Meta continues to face growing resistance from European regulators over its collection and usage of user data, Norwegian regulator Datatilsynet has now imposed a daily fine of $100K on the tech giant.
The regulator announced that it would continue to charge the fine every day starting from 4th August to 3rd November unless Meta takes remedial action for its privacy breaches.
According to Datatilsynet, Meta isn’t allowed to harvest physical locations and other user data in Norway and use the data to target them with advertising.
Notably, this is a very popular business model among Big Tech companies, and the introduction of such fines can have widespread implications in the industry.
Despite behavioral advertising being extremely common in almost every industry in recent times, it has come under scrutiny from data privacy authorities and regulators.
Behavioral advertising uses a variety of user data, such as their location, interests, browsing habits, etc. An increasing number of regulatory bodies, especially in Europe, have flagged it as an unethical practice and a breach of privacy.
While Norway is included in the European Economic Area (EEA), it’s not a member of the European Union.
Datatilsynet pointed out that the collection of such data without the users’ consent is illegal, which is why the regulator is imposing a temporary ban on such practices on Facebook and Instagram.
During the period of the ban, Meta will be fined around $100K every day. It will last three months, from August 4 to November 3, unless Meta can comply with the law and take the necessary remedial actions.
The Norwegian Data Protection Authority’s international department head Tobias Judin mentioned that the regulatory body’s decision does not ban Facebook or Instagram in the country.
The purpose is rather to ensure that people in Norway can use these services in a secure way and that their rights are safeguarded.Tobias Judin
Meta stated that the company would review Datatilsynet’s decision and that there won’t be an immediate impact on its services.
The company went on to add that the debate about legal bases has been ongoing for some time and that “businesses continue to face a lack of regulatory certainty in this area”.
The tech giant also stated that it is constantly engaging with the Irish Data Protection Commission, the lead regulator in the EU, regarding its compliance with the decision.
Meta has continued to be under fire over its data collection and usage practices for a while now.
Not too long ago, the EU slapped the company with a $1.3 billion fine over its practice of transferring the personal data of European users across the Atlantic.
Following the series of fines, warnings, and regulatory orders in Europe, Meta has even refrained from releasing its new text-based app Threads in the EU.
Last December, the Irish DPC ordered Meta to bring its behavioral advertising practices in line with European law by April.
Referring to the decision, Datatilsynet pointed out that according to a recent judgment by the EU’s top court, the tech giant still did not comply with the law. Meta recently lost a similar case against German antitrust authorities.
Datatilsynet also said that it might take the matter to the European Data Protection Board. Besides a potential extension of the ban, this might also lead to similar bans in other countries across the continent.
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