Meta Faces Massive Fine for Privacy Violation
Meta is currently facing a significant privacy penalty in Europe. The social media giant has been ordered to pay $101.5 million to Ireland’s Data Protection Commission for failing to safeguard the privacy and passwords of users during a data breach that occurred in 2019. According to a report by TechCrunch, the Data Protection Commission initiated a statutory inquiry under the General Data Protection Regulation (GDPR) after Meta, previously known as Facebook, disclosed that 'hundreds of millions' of users' passwords were stored in plaintext on its servers.
Privacy Regulation Violation
Under the GDPR, Meta was obligated to report the data breach within 72 hours of its detection, a requirement it failed to meet. Deputy Commissioner Graham Doyle emphasized the sensitivity of the situation, stating, "It is widely accepted that user passwords should not be stored in plaintext, considering the risks of abuse that arise from persons accessing such data." This lapse in privacy protection could potentially grant unauthorized access to users' social media accounts.
In response to the fine, Meta spokesperson Matthew Pollard clarified that the breach was identified during a security review in 2019, leading to immediate corrective measures. Pollard assured that there was no evidence of password misuse or unauthorized access. Meta proactively informed the Irish Data Protection Commission and cooperated throughout the investigation.
Previous Privacy Controversies
This incident is not the first time Meta has encountered issues related to privacy breaches. In 2023, the company was fined a record $1.3 billion by the European Union for improper data transfers to US servers. Additionally, in 2021, Meta faced a fine of $887 million from Amazon related to personalized advertising practices.
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