E-commerce giant Amazon has been hit with a record-breaking €746 million fine for breaking European Union data protection laws by processing user data in violation of the bloc's GDPR rules.
Amazon app. Credit: Sagar Soneji / Pexels
Amazon has been hit with a hefty fine for a supposed breach of data protection laws. Credit: Sagar Soneji / Pexels
The fine was slapped on by Luxembourg's National Commission for Data Protection and marks the continued trend for the EU taking a stance against primarily US-based tech giants.
Read more: Big Tech threatened with sanctions if they refuse to work with the EU
The company is expected to appeal the claim. It has stated the fine is completely "without merit" and that it would defend itself to the best of its ability, according to a company spokesperson.
The bloc's Global Data Protection Regulation (GDPR) rules specify companies should seek informed consent before using their personal data or face heavy fines.
While the EU has been actively taking action again such tech companies, there has been a global movement to seek to curb their power, both from the public, who claim many of these platforms heavy moderate and restrict free speech, to other businesses, who claim they are abusing their market power.
Amazon has already faced fines in the UK owing to its new digital services tax, which it avoided by charging third-party users more for use of its market.
However, Amazon is hardly the first tech giant to fall afoul of the EU's rules.
The bloc has already taken action has already been taken against Facebook, Twitter, Google, Apple and Microsoft.
However, individual member states have also suggested the EU should continue to be harsher towards so-called "Big Tech" companies.
Read more: EU must be tougher on Big Tech say France, Germany & Netherlands
One particular controversy surrounding these tech giants is the prevalence of conspiracy theories and misinformation regarding the Covid-19 pandemic circulating these platforms.
There has also been a pushback regarding the alleged censorship of conservative speakers on these platforms, which came to prominence after former US President Donald Trump was banned from Twitter following the storming of the US Capitol on January 6.
Countries such as Hungary - whose politicians feel their views are being censored - have also considered sanctions against tech giants.
France's data privacy watchdog handed out a €100 million fine regarding its use of online advertising. It was fined a further €500 million by antitrust regulators in June after they argued it had not worked "in good faith" with news outlets and other publishing firms over the use of their content.
The EU Court of Justice also recently endorsed powers for regulators to go after tech giants.
Read more: Blow to Big Tech as EU court backs national data watchdog powers
This was formed over complaints that their Irish counterparts - where many of these companies are based - are taking too long to deliberate on cases.
Dublin, however, rejects these claims, saying it was being "meticulous" in its handling of these issues.
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