Meta: Facebook fine is a data pointer on the EU’s approach to Big Tech

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Here’s a status update that Facebook didn’t want to post. The EU has fined his Meta parent company 1.2 billion euros for violating data protection laws. The blockade established that Meta’s legal basis for transferring EU-collected data to the US does not hold water. You must finish the practice immediately.

Meta is unlikely to attract much sympathy after the ruling. Data protection is a vital issue. It’s one that Facebook users, bombarded with targeted ads, have become increasingly concerned about. Governments around the world fear that foreign institutions will use the data of their citizens.

While the Meta fine is a record for the EU, it’s only about a quarter of the maximum possible levy, according to London law firm Fladgate. It’s also a small beer in the context of Meta’s $630 billion market cap.

That said, Meta appears to be the victim of inconsistencies in cross-border policy. European GDPR legislation is stricter than comparable US regulations. In particular, the US is making it easier for law enforcement agencies to gain access to data and harder for consumers to seek compensation. It’s a long-standing issue. US companies have struggled to find a legal way to transfer their European customers’ data back home.

Companies have so far relied on standardized contractual clauses – agreements between their European and US entities – to protect data. The EU’s Meta ruling makes it clear that these SCCs, by themselves, will not stick.

As Meta prepares its appeal, other companies will look into how they might be affected. SCCs are used by thousands of companies. Other Big Tech giants are also at risk of getting caught in regulators’ sights. They will hope that the EU and the US quickly implement an agreement to align data protection laws. One has already been agreed, broadly speaking, and should come into effect in the coming months.

The fact that the EU data protection authority chose to crack the whip in the first place is a useful data point for big tech companies. It shows that regulators on the continent are still giving them a resounding thumbs down.