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EU Court Imposes Fine on EU for Breaching Own Data Protection Law

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In a landmark decision, the EU General Court ruled on Wednesday that the European Commission must pay compensation to a German citizen for breaching its own data protection laws. The court found that the Commission transferred the citizen’s personal data to the United States without adequate safeguards, in violation of the EU’s General Data Protection Regulation (GDPR).

The case stemmed from the individual using the “Sign in with Facebook” option to register for a conference via the EU login page. The court concluded that the Commission’s transfer of the user’s IP address to Meta Platforms in the U.S. was unlawful, as it did not meet the required data protection standards set out by the GDPR. As a result, the Commission was ordered to pay the citizen 400 euros ($412) in damages.

A spokesperson for the European Commission acknowledged the ruling and stated that it would carefully assess the judgment and its implications. This decision marks a significant development in the enforcement of GDPR, a regulation widely considered to be among the most robust data privacy laws globally. Many major companies, including Meta, LinkedIn, and Klarna, have faced heavy fines from the EU for failing to comply with these regulations.

 

Russian Court Fines Google $78 Million for Ignoring Previous Penalties

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A Moscow court fined Alphabet’s Google 8 billion roubles ($77.9 million) on Tuesday for failing to comply with earlier penalty orders, as announced by the Moscow courts press service via Telegram. This fine is significantly higher than the typical fines of around 4 million roubles that are usually issued for such violations.

For years, Russia has pressured foreign technology companies to remove content it considers illegal, imposing incremental penalties for non-compliance. The Chertanovo District Court in Moscow stated that the latest fine was related to Google’s failure to comply with an administrative punishment, though it did not disclose specifics about the violation.

YouTube, owned by Google, has been a frequent target of criticism from Russian authorities. Once drawing approximately 50 million daily users in Russia, YouTube’s audience has reportedly dropped to around 12 million. Russian officials have accused Google of failing to upgrade equipment, allegedly leading to disruptions in YouTube’s download speeds. Critics argue that these disruptions are intentional efforts to hinder access to content critical of President Vladimir Putin’s government—an allegation Russia denies.

In December, President Putin accused Google of acting as a tool of the U.S. government for political gain. Google has not yet commented on the latest ruling.

BitMEX Fined $100 Million for Anti-Money Laundering Violations

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BitMEX, a prominent cryptocurrency exchange, has been fined $100 million by a U.S. District Judge for failing to comply with U.S. anti-money laundering (AML) laws. The fine follows a guilty plea in July 2023 after BitMEX was accused of deliberately ignoring anti-money laundering and “know your customer” (KYC) regulations between 2015 and 2020 to increase revenue. The company was sentenced to two years of probation, and its founders—Benjamin Delo, Arthur Hayes, and Samuel Reed—had previously pled guilty and received probation sentences.

In addition to the $100 million fine, BitMEX had already paid approximately $110 million in related criminal and civil settlements. Prosecutors had initially sought a $417 million fine, arguing that BitMEX failed to show genuine acceptance of responsibility, with the exchange ultimately pleading guilty after its founders’ pleas.

BitMEX contended that no further fine was warranted, pointing to its prior settlements and emphasizing that it has since taken corrective action to become a more compliant business. The company acknowledged it was slow to adapt to regulatory changes during a time of industry uncertainty but has since worked to rectify past issues.