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Meta loses legal battle as court upholds penalty for user data breach

The incident is a crucial component of the ongoing worldwide discourse concerning data privacy and the ethical obligations of technology corporations regarding users' data. It highlights the essential requirement for explicit and transparent agreements regarding data sharing.

Saumya Nigam Edited By: Saumya Nigam @snigam04 New Delhi Updated on: October 31, 2023 11:07 IST
Meta, tech news
Image Source : META Meta Fined for Unauthorized User Data Sharing

Meta Platforms Ireland, formerly known as Facebook, has lost a legal battle to contest a fine imposed by the South Korean data protection watchdog for sharing users' personal information without consent.

The Fine and Complaint- Fine of 7.8 billion USD

In November 2020, the Personal Information Protection Commission (PIPC) imposed a fine of 7.8 billion won (approximately $5.78 million) on Meta after its investigation revealed that the personal information of over 3.3 million South Korean Facebook users out of 18 million had been shared with third-party operators without their knowledge. This unauthorized sharing had taken place between May 2012 and June 2018.

In response to the PIPC's fine, Meta filed a complaint, arguing that the data sharing had been conducted with users' consent and that the company had not induced them to share their information.

The Court's Ruling: Meta's users had not been adequately informed about the related legal notices

However, on Thursday (26 October), the Seoul Administrative Court ruled against Meta. The court held that Meta's users had not been adequately informed about the related legal notices, and the company had unjustly profited from this practice.

The PIPC's investigation further found that the personal information of a user's Facebook friends was shared with third-party operators when a user accessed another operator's service through Facebook login. This information included details about the users' academic background, family, and marital status.

The watchdog also accused Meta of obstructing the investigation by submitting data belatedly and providing false documents.

The Implications: Meta faces the task of adhering to the court's decision

This ruling serves as a significant precedent for data privacy in South Korea, emphasizing the importance of informed consent and the responsible handling of users' personal information. It highlights the consequences companies may face when such standards are not met and users' data is mishandled or shared without their knowledge.

Meta now faces the task of adhering to the court's decision and may need to review its data-sharing practices in South Korea and beyond to avoid similar legal challenges in the future.

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Data Privacy Challenges

This case is a part of the broader global discussion on data privacy and the responsibilities of tech companies in handling users' personal information. It underscores the need for clear and transparent data-sharing agreements and the importance of user consent, especially when sharing data with third parties.

Measures against data breaches and privacy concerns

As data breaches and privacy concerns continue to make headlines, this ruling reinforces the role of regulatory bodies in holding companies accountable for data protection violations. Companies must take proactive measures to protect user data and ensure compliance with privacy regulations to avoid legal consequences and maintain public trust.

Inputs from IANS

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