Amazon says it wants to challenge a record $ 886 million fine imposed by an EU privacy regulator that the company considers a breach of privacy related to its advertising technology..
Amazon has been fined a record $ 886 million for mishandling personal data protected under the General Data Protection Regulation (GDPR), the privacy law of the European Union’s privacy regulatory bloc.
A data-protection commission in Luxembourg, where Amazon is headquartered in Europe, has determined that Amazon has failed to comply with the rules under general data protection regulation regarding the processing of its personal data. The fine was first published in a Securities filing Published Friday. Amazon will have to change its practice to make that decision.
The retail giant said it wanted to “defend itself strongly” on the issue.
A company spokesman said the investigation was not related to any data breaches and no third-party customer information was found.
“This information is beyond doubt,” the spokesman said.
“The decision on how we show relevant advertisements to customers depends on the subjective and tested interpretation of European privacy law, and the proposed penalty is in full proportion to that interpretation,” they added.
The fine equates to about 4% of the company’s declared net income last year, which is 21.3 billion. The penalty structure under the 3-year-old Privacy Act can increase a company’s global annual revenue by up to 4% from the previous year, a significant amount in this case.
Amazon’s reported revenue was more than 6 386 billion in 2020, up 37% from the previous year.
The EU regulator did not immediately respond to a request for comment, and the decision has not yet been posted on its website.
Amazon appears ready to appeal the decision, although on what basis it is unclear. Companies that are fined under the GDPR are able to appeal to the court when they believe that the fine is unreasonably large or in an attempt to challenge the integrity of the investigation.
The Wall Street Journal Report There was a sharp increase in appeals in March, 15 of which were filed alone over the previous six months. According to the study, the court has decided to withdraw or reduce the fine in most cases.
At the time of writing, Amazon’s stock had a sharp dive that began with a 6% decline during pre-market trading, although it may have played the best role in terms of privacy. Financial reporters cited an estimated revenue forecast, an increase in operating costs associated with the Covid-1 pandemic epidemic, and a lack of sales as the primary reasons.