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Amazon facing $425 million fine over EU privacy law

Photo by: Christian Wiediger/Unsplash

Amazon may be facing a $425 million fine under the European Union's privacy law, according to reports. A source that has knowledge of the issue has shared this information on Thursday, July 10.

Why Amazon could be fined

According to Reuters, Commission Nationale pour la Protection des Données (CNPD) or the National Data Commission Protection of Luxembourg, released a draft decision and proposed a fine as a penalty for Amazon’s privacy customs related to EU’s national data protection.

Likewise, the case is in connection to Jeff Bezos’ company’s collection and use of people’s personal data. The company’s possible violations under the EU's data privacy policies called the General Data Protection Regulation (GDPR) is also being checked as per the source.

It was learned that the GDPR is requiring firms to ask for people's consent before using their personal data. If the companies will not comply or fail to follow this rule, they will be slapped with hefty fines.

Biggest penalty in EU privacy law

The Wall Street Journal reported that the European Union privacy regulator already proposed to fine Amazon with over $425 million for alleged violations of Europe’s General Data Protection Regulation. If this will push through, this will be the biggest penalty under the bloc’s privacy law.

The CNPD already began circulating a draft for sanctioning the American tech and e-commerce company’s privacy practices. The commission is said to be Amazon’s lead privacy regulator in the European Union as the firm’s EU is headquartered in Grand Duchy.

In any case, Amazon’s collection of personal data is said to be linked to its cloud-computing business which is the Amazon Web Services. Then again, aside from the personal data, other specifics of the accusations against Amazon were not fully explained or revealed.

Meanwhile, if the draft decision from the CNPD is finalized, other EU privacy regulators must also approve before it can order Amazon to pay a corresponding fine. It was said that this process will take months so before it is finalized, there could be a lot of changes already and possibly the fine could be reduced.

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