Amazon faces a $ 425 million fine from the Luxembourg data protection authority for violating the GDPR. According to the Wall Street Journal, the proposal has already been handed over to the authorities of the other countries of the block. This would be the highest penalty ever imposed for violating the GDPR.
Luxembourg’s data protection commission, the CNPD, has proposed that Amazon receive what would amount to the largest fine ever imposed by EU privacy laws, the Wall Street Journal reported Thursday. The opinion of the Luxembourg authority is particularly important given that Amazon has its European headquarters in the Grand Duchy.
According to the report, the Luxembourg Commission for Data Protection CNPD sent the proposal to the other 26 national data protection authorities in the EU. To proceed with the sanction, in fact, it is necessary that the measure be agreed with the guarantors of all member countries. The process could take months and lead to changes in the amount of the fine.
A source told The Wall Street Journal that the case involves Amazon’s collection and use of personal data and violations of the EU’s core data privacy rules. The alleged legal violation concerns the collection and use of personal data of individuals by the tech giant, and is not related to Amazon Web Services, the platform that provides cloud computing services.
The fine corresponds to just over 0.1% of Amazon’s $ 386.1 billion in annual revenue in 2020. The GDPR predicts that fines can hit up to 4% of companies’ annual revenue. This means that Amazon may have to pay up to $ 1.54 billion. For now, the company has preferred not to comment.
The news comes a few days after the EU and UK antitrust authorities decided to open two formal investigations against Facebook, accused of violating competition rules by using advertising data collected from advertisers to compete with them in the markets where the social network is active.
In recent days, the vice-president of the EU Commission with responsibility for competition, Margrethe Vestager, had expressed concern that certain gatekeepers could use their power in an anti-competitive key. “We must ensure that the growth of the Internet takes place in a competitive way – he said -. The first results of some researches show the central role in the voice and operational assistance of certain gatekeepers, such as Google, Apple and Amazon, which direct behaviors that negatively affect competition ”.