Juta Gurinaviciute is the CTO at NordLayer, a remote access security provider for global organizations.
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Data privacy has become one of the defining issues of the internet today. As big tech companies have invaded nearly every aspect of modern life, concerns have grown over how businesses collect, process and monetize personal data. The European Union pioneered data privacy in 2018 by implementing the General Data Protection Regulation (GDPR). This legislation gave citizens more control over their data while threatening fines for violations.
Six years later, GDPR has reshaped how businesses handle consumer data, ushering in new corporate data protection policies. However, the regulation also has teeth, as evidenced by penalties against tech giants like Meta, Amazon and Google. Our company analyzed the fines and found that authorities have issued over 2,000 violations, resulting in more than €4.5 billion in fines as of May 2024.
On the other hand, the U.S. has lagged in developing federal data privacy rules. However, certain state laws and the need for American businesses to comply with GDPR for European users have raised the compliance stakes nationwide. With momentum building for national data privacy legislation, companies are paying attention to the multi-billion-dollar fines of GDPR.
Major Violations And Top Countries For GDPR Fines
Meta Platforms Ireland, including Facebook and WhatsApp, has racked up over €2 billion in GDPR fines across six major penalties. The largest was a staggering €1.2 billion fine in 2023 for insufficient legal basis for data processing. Meta has been repeatedly penalized for non-compliance with data processing principles and lack of transparency.
Amazon was hit with a €746 million fine in 2021 by Luxembourg's data protection authority for GDPR violations around its advertising practices. TikTok faced a €345 million penalty in 2023 for mishandling children's data, while Google received two fines totaling €150 million in 2021 for making it too difficult for users to refuse cookies.
As data privacy has become more strict, certain countries have emerged as the biggest enforcers of GDPR. Spain's data protection agency is among the most active, issuing nearly €81 million in fines across 857 sanctions in six years. This includes a €10 million penalty against Google for unlawful data transfers.
Italy has been another enforcer, issuing 354 penalties, resulting in nearly €150 million in fines since 2018. Just this year, Italy's data protection authority issued a massive €79 million fine against Enel Energia for telemarketing violations, the country's largest GDPR penalty to date.
Germany has taken an approach allowing national and regional data protection authorities to enforce GDPR. With citizens attuned to data privacy, Germany has issued 183 fines totaling €55 million since 2018.
Privacy Law Development In The U.S.
While Europe has led the way on data privacy legislation through GDPR, the U.S. has taken a slower approach at the federal level. However, mounting consumer concerns over how personal data is collected and used have spurred activity among state legislatures.
To date, seven states—California, Colorado, Connecticut, Oregon, Texas, Utah and Virginia—have already enacted consumer data privacy acts. These regulations give residents more control over their personal information, including rights to access, delete and opt out of data sharing with third parties.
However, the push for consumer data privacy protections is gaining momentum nationwide. Eleven more states have passed privacy acts that will take effect over the next few years or months. Nine more states currently have consumer data privacy legislation working its way through their legislatures.
While such bills remain inactive in six states, the issue remains on the lawmakers' radar. As of mid-2024, no consumer data privacy legislation has been introduced in 16 states. However, as more state laws take effect and public pressure mounts, Congress may take up the federal data privacy standards mantle.
The U.S. patchwork approach contrasts with the European Union's GDPR, which imposed a uniform data protection framework across 27 countries. American businesses that process EU citizens' data must still follow GDPR's data handling, consent, and breach notification requirements.
How Businesses Should Prepare For Privacy Regulations
The massive fines imposed under GDPR and the rise of state data privacy laws in the U.S. show how consumer rights have become a cornerstone issue for the 21st century. As regulators crack down on bad data practices, businesses must get ahead of the compliance curve.
For global companies, meeting the GDPR's strict data protection standards should be the priority. Reviewing data collection practices, updating privacy policies, implementing security safeguards and developing processes for managing user consent are all critical steps. Investing in training programs will also be key to avoiding costly missteps.
Building this discipline, which includes data protection, into products and services from the ground up takes committed leadership. Privacy should be viewed not as a compliance obligation but as an ethical direction and brand differentiator.
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