(MENAFN- NewsBytes)
Facebook data breach could cost it a whopping $1.63 billion
01 Oct 2018
After failing to protect data of as many as 50 million users, Facebook could face a huge fine from an EU privacy watchdog.
On Saturday, Ireland's Data Protection Commission (DPC) told Wall Street Journal the social media giant could be fined as much as $1.63 billion if it's proven it didn't take necessary steps to protect data of the users.
Here are the details.
EU data protection under GDPR
GDPR explained
Specifically, the fine would be imposed if DPC, which has been looking at Facebook's privacy-related policies, determines the company violated the General Data Protection Regulation in any way.
GDPR involves a strict set of rules, under which organizations serving EU citizens, have to take adequate steps to protect their personal data from being leaked or misused - Facebook is one of those organizations.
Fines under GDPR laws
Fact
Companies failing to protect user data could either face up to $23 million as fine or 4% of their global revenue for the last year (Facebook's case). Also, they have to inform regulators about the breach within 72 hours of discovering it.
More data required to confirm the violation
Current situation
While the privacy watchdog revealed the fine looming over Facebook's head, it did note that further action would be taken only after assessing information related to the breach.
It has asked Facebook to provide more details of the data breach, including its exact nature, scale, and the risk to users, particularly to EU citizens.
Statement from Ireland's DPC
Fact
The regulator said it is concerned over not just the breach but also the fact that "Facebook is unable to clarify the nature of the breach and the risk for users at this point."
Facebook's position in the case
Facebook's answer
Facebook, on the other hand, has stated the investigation is underway and Ireland's DPC and other regulators will be notified as soon as there are further developments.
The breach in question is the second major privacy-related issue the social network has faced over the last six months.
The first, as many would recall, was the Cambridge Analytica scandal, which was disclosed earlier this year.
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