Europe: Amazon Slapped with Record-Breaking Privacy Fine

E-commerce giant Amazon recently reported that the Luxembourg data protection authority had imposed on it a fine totaling EUR 746 million. The fine appears to have been laid on Amazon for its use of users’ personal data for targeted advertising, in violation of the EU’s General Data Protection Regulation (GDPR). This is the highest fine imposed to date under the GDPR, and by a huge margin from the EUR 50 million fine imposed on Google, which, until now, held the record for the highest GDPR fine.

Amazon has appealed the fine and may succeed in lowering it. However, the fine has already achieved its dissuasive effect, in that it exposes the GDPR’s enormous “bite”. Until now, it appeared authorities were reticent about exercising the tremendous power vested with them under the GDPR, but that no longer seems to be the case.

The Fine’s Effect

The Amazon fine sends a crystal clear message to companies that make use of people’s personal data. Companies must ensure, without delay, their compliance with the requirements of the privacy protection legislation that applies to them. Privacy protection laws around the world are becoming more sophisticated, arming the authorities enforcing these laws with more aggressive enforcement tools in instances of violations.

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We recommend our local and international clients ensure they are complying with relevant privacy rules. For further information, please contact our privacy team.