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EU Privacy Regulator Fines Meta 251 Million Euros for 2018 Data Breach

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Meta has been fined 251 million euros ($263.5 million) by the Data Protection Commission (DPC), the lead European Union data privacy regulator, for a 2018 security breach that exposed the personal data of 29 million users on Facebook.

Details of the Breach

The breach occurred after cyber attackers exploited a vulnerability in Facebook’s “View As” feature, which allowed users to see how their profile appeared to others. This vulnerability led to the exposure of sensitive personal data, including users’ full names, contact details, location, place of work, date of birth, religion, gender, and in some cases, children’s personal information.

According to Graham Doyle, Deputy Commissioner at the DPC, the breach posed a significant risk for the misuse of this data. Although the breach affected 29 million accounts globally, 3 million of those were in the EU and the European Economic Area (EEA).

Meta’s Response and Penalty

Meta addressed the issue shortly after the breach was discovered and took action to remedy the vulnerability. Despite this, the DPC imposed a fine under the EU’s General Data Protection Regulation (GDPR), which has led to significant penalties for Meta in recent years. To date, Meta has been fined almost 3 billion euros for breaches under GDPR, including a record 1.2 billion euros fine in 2023 related to data privacy violations, which Meta is currently appealing.

Meta’s Appeal

Meta has announced its intention to appeal the fine and reiterated its commitment to protecting users’ privacy. A company spokesperson stated, “We took immediate action to fix the problem as soon as it was identified, and we proactively informed people impacted as well as the Irish Data Protection Commission.”

Broader Context

The DPC oversees the majority of large U.S. internet companies operating in the EU, as these firms have their European operations based in Ireland. This fine marks another chapter in the EU’s ongoing efforts to enforce data protection regulations under the GDPR, which was introduced in 2018 to strengthen privacy rights across the region.

 

Italy Concludes Probe into Meta Executives for Alleged €887.6 Million VAT Evasion

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Italian prosecutors have concluded their investigation into alleged tax evasion by Meta (META.O), the parent company of Facebook, involving two executives from its Irish subsidiary, Meta Platforms Ireland Ltd. The probe centers on a claimed €887.6 million ($937.93 million) in VAT evasion. This marks a significant step in the process, although no trial requests have been made yet, as the suspects are still allowed to prove their innocence.

Implications for the Industry

The case could have broader consequences for the tech industry, as it involves how Meta provides access to its platforms like Facebook and Instagram. While the €887.6 million might seem modest compared to Meta’s $32 billion in annual revenue, the issue revolves around the way user data is exchanged for free access to these services, which could set a precedent for how other tech companies are taxed.

Tax Dispute with Italy’s Revenue Agency

The core of the investigation is tied to ongoing negotiations between Meta and Italy’s Revenue Agency. Last year, Italian tax authorities argued that Meta’s user registrations should be considered taxable transactions, as they involve the non-monetary exchange of personal data for access to social media services. The authorities claim that between 2015 and 2021, Meta failed to declare nearly €4 billion in taxable income, leading to VAT evasion of more than €887 million.

Next Steps and Meta’s Response

Meta has 60 days to respond to the Revenue Agency’s observations, after which the company can either settle by paying the proposed amount or initiate a legal challenge. Meta disagrees with the tax authority’s stance, arguing that providing users with access to its platforms should not be subject to VAT. In response to the dispute’s complexity, Italy’s Ministry of Finance has sought a technical opinion from the European Commission’s VAT Committee, though no response has been received yet.

Meta Contractor Ignored Threats to Ethiopian Content Moderators by Rebel Group, Court Documents Reveal

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Court documents filed on December 4 reveal that Sama, a contractor for Meta, allegedly dismissed threats made by Ethiopia’s Oromo Liberation Army (OLA) against Facebook content moderators working on graphic and inflammatory posts from the region. The revelations are part of an ongoing legal battle involving 185 former moderators in Kenya, who claim wrongful dismissal after attempting to unionize.

The moderators, who worked for Kenya-based Sama before Meta switched contractors to Majorel, said they were blacklisted from reapplying for roles at Majorel. Some moderators specializing in Ethiopian content reportedly received explicit threats from the OLA for removing the group’s posts.

One moderator, Abdikadir Alio Guyo, stated in his affidavit that he received a message warning him and his colleagues to stop deleting OLA content or face “dire consequences.” Another, Hamza Diba Tubi, reported receiving a message from the rebels listing moderators’ names and addresses, leaving him fearful for his safety and that of his family.

While Sama eventually moved one identified moderator to a safehouse, the petition alleges that the company initially dismissed the moderators’ complaints, accusing them of fabricating the threats.

Hate Speech Concerns in Ethiopia

The court documents also accuse Meta of failing to address systemic issues surrounding hate speech on its platform in Ethiopia. Alewiya Mohammed, a former supervisor of moderators, testified that moderators were caught in a “loop of hateful content” they were unable to remove because it did not technically violate Meta’s policies.

Experts previously hired by Meta had recommended more robust action against harmful content in Ethiopia, but the advice was allegedly ignored.

Broader Legal and Ethical Implications

This case is one of several ongoing legal challenges faced by Meta concerning its operations in Ethiopia. A separate lawsuit filed in 2022 accused Meta of allowing violent posts on Facebook to escalate the Ethiopian civil war between federal forces and Tigrayan regional authorities.

Meanwhile, the current lawsuit involving the dismissed moderators could have global repercussions for how Meta engages with third-party contractors and content moderators.

Meta has yet to comment on the allegations, while Sama said it could not provide a statement on the matter. The Oromo Liberation Army has also not responded to requests for comment.

The situation highlights the dangerous environment moderators face, particularly in regions like Ethiopia, where content moderation intersects with armed conflicts.