Amazon likely to face a fine of $425 million EU

Amazon, the biggest online retail company is facing a threat of a fine of $425 million EU. The fine has been proposed by a European Union privacy regulator. This is the biggest-yet penalty under the European Union privacy law so far. The Data-protection commission of Luxembourg, the CNDP, had circulated a draft which had the decision of sanctioning Amazon’s privacy practices.

It also proposed a fine among 26 bloc’s 26 other national authorities. The CNDP, which is Amazon’s lead privacy regulator in the European Union, has its headquarters situated in the Grand Duchy. The Luxembourg case is allegedly related to various valuations and breaking of the General Data Protection Regulation, which is known as GDPR in short of Europe.

They state that Amazon’s collection and use of personal data are not related in any way to cloud computing businesses, AWS, which stands for Amazon Web Services, as stated by one of the familiar people. The person who started this further rejected and declined to speak anything elaborately on the specific allegations that Amazon faces.

One of the spokespeople of the company, Amazon has completely declined and denied this statement. As stated before by the company, Amazon gives priority to its customers’ privacy. It has also stated that it obeys and complies with the laws of all the nations where it has been operating for several years. A spokesperson for the CNDP has stated that the regulator was not permitted to talk on individual cases.

Before the decision of the draft can be finalized, it has to be agreed upon excessively by all the other European Union privacy regulators. However, this finalization process could take weeks and even months which could lead to a drastic change. The change could either be a higher fine than $425 million EU or a lower one.

Amazon’s income is tremendously high and the fine of $425 million that Luxembourg has proposed would roughly represent only 2% of Amazon’s reported next worth or net income of $21.3 billion which was for the year 2020 and only 0.1% of Amazon’s $386 billion in sales. Under the GDPR, the regulators can sue a company for a fine of 4% of that company’s annual revenue.

The regulator of Luxembourg has received lots of objections that can help it to draft its decision. Another familiar person has said that at least one object is stating that the fine should be higher than $425 million. Luxembourg can either resolve the objections or reject them. This, however, would result in the triggering of debate and vote among all the European Union privacy regulators at the European Data Protection Board.

The European Union’s mounting enforcement of privacy comes alongside the increase of antitrust enforcement with the European and the United States regulators which have launched multiple cases against big tech companies like Amazon. Until now, we know that a spokesperson of the company of Amazon has denied all claims and has claimed it to be untrue.

Related Articles

Stay Connected

- Advertisement -spot_img

Latest Articles