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Meta Fined Record $1.3 Billion And Ordered To Stop Sending European User Data To US

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2 years ago

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LONDON, England – The European Union smacked Meta with a record $1.3 billion privacy punishment on Monday and ordered it to stop sending customers’ personal information across the Atlantic by October, the latest salvo in a decade-long case started by concerns about US cyber snooping.

The 1.2 billion euro penalty is the largest since the EU’s rigorous data privacy law was enacted five years ago, exceeding Amazon’s 746 million euro charge for data protection infringement in 2021.

Meta, which had earlier warned that services for its European consumers could be cut off, has vowed to appeal and ask courts to halt the judgment immediately.

According to the business, “there is no immediate disruption to Facebook in Europe.” The decision pertains to user data such as names, email and IP addresses, messages, viewing history, geolocation data, and other information used by Meta and other internet behemoths such as Google for targeted online advertising.

“This decision is flawed, unjustified, and sets a dangerous precedent for the countless other companies transferring data between the EU and the U.S.,” said Meta’s president of global affairs, Nick Clegg, and chief legal officer Jennifer Newstead, in a statement.

It’s the latest twist in a legal saga that began in 2013 when Austrian lawyer and privacy activist Max Schrems filed a complaint about Facebook’s handling of his data in the aftermath of former NSA contractor Edward Snowden’s revelations about electronic surveillance by US security agencies. This includes the revelation that Facebook gave agencies access to Europeans’ data.

The issue has highlighted the differences between Europe’s stringent approach to data protection and the more loose framework in the United States, which lacks federal privacy legislation. With a succession of legislation requiring them to police their platforms more closely and protect users’ personal information, the EU has been a global leader in limiting Big Tech’s power.

The EU’s top court threw down the Privacy Shield deal, which covered EU-US data transfers, in 2020, saying it didn’t do enough to shield people from the US government’s electronic probing. The judgment on Monday found that legal stock contracts, another instrument for governing data transfers, were also unconstitutional.

Last year, Brussels and Washington agreed on a revised Privacy Shield that Meta might utilize, but the agreement is awaiting a decision from European officials on whether it effectively safeguards data privacy.

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EU authorities have reviewed the pact, and the bloc’s lawmakers this month urged for revisions, claiming that the safeguards are insufficient Meta.

The fine was imposed by Ireland’s Data Protection Commission, which serves as Meta’s principal privacy regulator in the EU’s 27-nation bloc, due to the Silicon Valley tech giant’s European headquarters being in Dublin.

The Irish watchdog said it gave Meta five months to stop sending European user data to the US and six months to bring its data operations into compliance “by ceasing the unlawful processing, including storage, in the US” of personal data transferred in violation of the EU’s privacy rules.

In other words, Meta must remove all that data, which may be a greater concern than the punishment, according to Johnny Ryan, a senior fellow at the Irish Council for Civil Liberties, a nonprofit rights organization focused on digital and data issues.

“This order to delete data is causing Meta a lot of grief,” Ryan explained. “It is very difficult to see how it will be able to comply with that order” if the business is required to scrub data for hundreds of millions of European Union users dating back ten years.

If a new transatlantic privacy agreement takes effect before the deadlines, “our services can continue as they do today without any disruption or impact on users,” according to Meta.

Schrems projected that Meta would have “no real chance” of having the verdict overturned. And according to him, a new privacy treaty may not be the last of Meta’s problems because it is likely to be overturned by the EU’s top court.

“Meta intends to rely on the new agreement for transfers in the future, but this is unlikely to be a long-term solution,” Schrems said. “Unless and until U.S. surveillance laws are changed, Meta will most likely have to keep EU data in the EU.”

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Schrems suggested a “federated” social network in which European data is kept in Meta’s European data centers “unless users, for example, chat with a U.S. friend.”

In its most recent earnings report, Meta cautioned that if there is no legal basis for data transfers, it will be compelled to stop supplying its products and services in Europe, “which would materially and adversely affect our business, financial condition, and results of operations.”

If the transfers are eventually halted, the social media business may undergo a costly and difficult overhaul of its processes. According to its website, Meta has a fleet of 21 data centers. However, 17 of them are in the United States. Denmark, Ireland, and Sweden are the other three European countries. Another is located in Singapore.

Other social media behemoths are under scrutiny for their data practices. TikTok has attempted to assuage Western concerns about the Chinese-owned short video-sharing app’s potential cybersecurity hazards by announcing a $1.5 billion proposal to store user data in the United States on Oracle servers.

SOURCE – (AP)

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Forced Sale Google Chrome Could Fetch $20 Billion

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5 hours ago

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2024-11-21

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Sale Google Chrome

Antitrust officials in the US could force the sale of Google’s Chrome browser for up to $20 billion, demonstrating the tremendous worth of the world’s most popular web browser.

Bloomberg Intelligence attributes Chrome’s projected worth to its more than 3 billion monthly active users. The US Department of Justice is preparing to request a federal judge order the browser’s separation from Google’s parent company, Alphabet.

Chrome’s worth comes from its overwhelming 61% market share and its crucial role in Google’s advertising ecosystem. User data enables businesses to better target adverts, and the browser also acts as an important distribution mechanism for Google’s AI technologies.

Industry analysts think it may be difficult to find a suitable buyer. While tech behemoths like Amazon could finance the purchase, they would likely face regulatory scrutiny.

AI businesses, such as OpenAI, may emerge as more viable contenders. They could potentially leverage Chrome to broaden their reach and develop an advertising business.

“It’s not directly monetizable,” one analyst told Bloomberg. “It functions as a gateway to other things. It’s unclear how you would assess that in terms of pure revenue generation.”

Google opposes prospective sales, claiming that they will hamper innovation. The firm does not break out Chrome’s revenue individually in its financial filings, even though the browser’s user data plays an important part in the company’s principal revenue stream, advertising.

The DOJ’s suggestion follows Judge Amit Mehta’s August decision that Google had illegally monopolized the search industry. The judge will consider the recommended remedies at a two-week hearing in April 2024, with a final judgment due in August 2025.

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Bitcoin Has Set a New Record And Is Approaching $100,000.

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14 hours ago

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2024-11-21

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(VOR News) – Bitcoin broke beyond the $98,000 mark for the first time on Thursday as investors awaited Donald Trump’s second term as president. All of this happened during the day. As such, cryptocurrency has reached a significant turning point.

According to Coin Metrics, the top cryptocurrency was trading at $97,541.61 during the most recent trading session. Merchants provided this information. This suggests a price gain of more than three percent during the previous trading session.

When the period began, Bitcoin peaked at $98,367.00.

During the premarket trading session, MicroStrategy, a platform that facilitates cryptocurrency foreign exchange trading and serves as a bitcoin proxy, saw a 13% gain. Coinbase, on the other hand, had a 2% rise during that period. Furthermore, all of these increases occurred simultaneously.

The market value of Mara Holdings increased by 9%, which helped raise the valuation of mining companies overall. This was among the factors that led to the total rise.

Because of the widespread belief that President Trump will usher in a new era of prosperity for cryptocurrencies, one marked by more favorable laws and the possible creation of a national strategic bitcoin reserve, the price of Bitcoin has been rising steadily this month.

The most recent change brought about by the increase was the consequence of higher financing rates and more open interest in the futures market during Asian trading hours. The rise was the catalyst for this change. This action was prompted by the ensuing rush.

Throughout its lifespan, this legislation was the catalyst for this change for a variety of reasons. At the same time, spot market premiums decreased, according to CryptoQuant statistics. All of this happened at the same time.

Furthermore, a number of short liquidations have been sparked by the recent spikes in Bitcoin’s price, which has caused the price to rise overnight. As a result, the price has gone up much more. As a result, the total number of short liquidations has increased.

According to CoinGlass, these liquidations have effectively produced more than $88 million in capital during the last 24 hours.

Rob Ginsberg, an analyst at Wolfe Research, noted in a study released on Wednesday that “historically, following previous movements of this magnitude, Bitcoin has either entered a consolidation phase or disregarded the overbought condition as investors accumulate.” This phrase relates to the fact that this particular move has happened before.

Ginsberg stated this in reference to the evolution of Bitcoin over time.

Ginsberg’s answer makes reference to Bitcoin’s propensity to go through a period of consolidation. The comment also made reference to this.

He said, “Considering we are emerging from an extended consolidation phase and the price has reached a new high, it suggests that the pursuit is underway.”

The crucial psychological milestone of $100,000 is expected to be reached in the upcoming weeks, and this breakthrough could happen as early as Thursday. It seems likely that this level will be reached. There is a chance that this new development will take place.

This task will be carried out against the backdrop of this historical era. In addition, if Trump were to win a second term, federal budget deficits would increase, inflation would likely increase, and the dollar’s position in international affairs would change.

The administration that Trump would run during his presidency would be responsible for these consequences. All of these characteristics would positively impact the value of Bitcoin as a currency if they were taken into account in the order that they are presented.

The price of bitcoin had risen by more than 130% by the beginning of 2024.

SOUREC: CNBC

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Target Struggles in the Third Quarter: Offers Tempered Holiday Outlook and Price Cuts

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1 day ago

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2024-11-20

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Target

(VOR News) – Target experienced a modest rise in sales during the third quarter; nevertheless, profitability declined due to reduced customer spending attributed to inflation and adverse effects from the ongoing costs associated with the October dockworker strike.

Despite ongoing consumer expenditure in the United States, but with more prudence, the Minneapolis retailer did not meet Wall Street’s forecasts for the quarter and similarly disappointed industry analysts with its projections for the final quarter of the year.

Target’s reduction in prices for Christmas products, including a Thanksgiving promotion that lowered the cost of the holiday feast relative to last year’s total, raises concerns about disappointing quarterly results.

Target’s latest quarter sharply contrasts with competitor Walmart, which reported another quarter of exceptional revenues on Tuesday and provided positive forecasts for the forthcoming holiday season. Amazon disclosed last month that its quarterly profits had risen. Amazon surpassed projections with an 11% rise in quarterly revenue.

Target fell over 21% on Wednesday morning.

Chairman and CEO Brian Cornell stated, “We encountered distinct challenges and financial constraints that impacted our overall performance.”

FactSet reports that Target’s net income for the quarter ended November 2 was $854 million, or $1.85 per share, markedly below the anticipated $2.30 and a decline from $971 million, or $2.10 per share, in the same quarter of the previous year.

Despite an increase in sales to $25.67 billion from $25.4 billion the previous year, they fell short of Wall Street’s projections.

Target announced that for the fiscal fourth quarter, it anticipates earnings per share to fall between $1.85 to $2.45. This amount is below the $2.65 per share forecast by analysts surveyed by FactSet.

The retailer announced that in the third quarter, its comparable sales, derived from stores and digital platforms operational for a minimum of one year, increased by 0.3%.

This is inferior to the second quarter’s 2% growth. Several months of decreases, comprising a 3.7% reduction in the first quarter and a 4.4% reduction in the company’s final quarter of 2023, were counterbalanced by the rise in the April–June period.

Cosmetics sales rose by almost 6%, whilst food, beverages, and necessities such as shampoo experienced gains in the low single digits relative to the previous year.

The positive attributes were negligible. Target’s quarterly customer traffic rose by 2.4%. Target officials report that this represents an increase of 10 million sales transactions compared to the previous year. Digital comparable sales rose by 10.8% due to a 20% enhancement in same-day delivery facilitated by the Target Circle loyalty program and double-digit growth in its drive-up service.

Target encountered several challenges.

Target’s food and beverage sales constitute under 25% of overall sales, indicating a greater dependence on luxury items such as apparel and accessories.

Target management acknowledged that the company, similar to other retailers, had to redirect specific items due to the strike of 45,000 dockworkers, the first occurrence since 1977.

The accumulation of commodities in warehouses escalated operational expenses and diminished corporate earnings.

The commitment by President-elect Donald Trump to impose elevated import tariffs is resulting in difficulties for Target and other enterprises. Trump advocates for a 60% tariff on Chinese imports and a 20% levy on all other products. Cornell stated that, despite monitoring trends meticulously, the corporation has prioritized diversifying its supplier network.

“Currently, there exists considerable uncertainty regarding future developments, and we will exercise our flexibility to adapt as necessary,” he stated on the call.

Buyers remain apprehensive due to ongoing uncertainty, as prices, albeit decreasing, remain elevated compared to a few years prior.

“They are exhibiting significant patience, pursuing promotions and outstanding value on essential pantry items,” Cornell stated during a conference call with reporters. “Over the year, they have consistently focused on discretionary categories and are practicing prudent shopping behaviors.”

Target officials indicated a decline in television purchases, although they expressed interest in incorporating candles, frames, and flowers into their home décor.

Target has been reducing prices to boost sales. Last spring, it reduced costs for numerous essentials, including milk and diapers. Almost fifty percent of the numerous goods offered this Christmas are priced below $20. Target is offering a Thanksgiving dinner bundle for four people at $20, which is $5 less than its 2023 Thanksgiving meal package.

SOURCE: USN

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