Amazon has filed an objection to the fine of 746 million euros imposed on the webshop in July 2021. The Luxembourg regulator CNPD imposed a fine for violating the European GDPR privacy directive.
Appeal against millions of fines
Amazon was fined in July 2021 for failing to comply with European privacy rules. Amazon continues to maintain that data has never been stolen. According to Amazon, no customer data has ended up with third parties. Amazon has therefore appealed against the million-dollar fine, Bloomberg reports. The appeal was submitted to the Luxembourg Administrative Tribunal last Friday.
Collection of personal data
The record fine of no less than 746 million euros has been imposed by the Luxembourg regulator CNPD. Amazon is based in Luxembourg in the EU and therefore falls under CNPD. According to CNPD, Amazon has processed the personal data of customers in a way that violates European privacy rules. The CNPD fine was imposed following a 2018 complaint from the French privacy rights group La Quadrature du Net.
Amazon is said to have collected data about customers and partners. The web store group would also have collected information about the browsing and purchase history of visitors to the webshop. Amazon may use this information for the personalized advertising system. Amazon would not have asked users for permission to do this. This goes against European rules.
Like Google and Facebook, Amazon makes a lot of money from big data. The large amounts of information that companies collect about internet users can be used for market research. Amazon collects information about the products that customers buy and which pages they visit. Amazon can give suggestions and hope that customers can buy more.
Fine of 746 million euros
A violation of the privacy law can result in a hefty fine. Never before has a fine for violating European privacy rules been so high. In 2018, privacy rules in the EU were tightened. Since then, companies can be fined up to four per cent of a company’s worldwide turnover.
Even more millions of fines
This is not the only fine that Amazon has to hang on its pants. At the end of 2020, Amazon was also fined tens of millions of euros by the French regulator CNIL. Amazon had placed advertising cookies without asking users for permission. In addition to functional cookies, advertising cookies also ended up on visitors’ computers. The information provided in advance was not sufficient and too general. Amazon was fined €35 million for this violation.
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