For breaching European Union online privacy rules, Alphabet’s Google is facing fine of 50 million euros ($57 million). The fine by French data protection watchdog ruled on Monday is the biggest such penalty levied against a U.S. tech giant.
Google is the biggest search engine in the world which not only remained failed to properly obtain its customer’s consent for personalized ads but the way it informs users about its handling of their personal data also lacks clarity and transparency, French regulator said.
The EU’s General Data Protection Regulation (GDPR) replaced the 1995 EU Data Protection Directive and also superseded the 1998 UK Data Protection Act and become effective May 25, 2018. The regulation allows users to control their data in a better way and vests more powers in regulators which can now impose fines of maximum 4 percent of global revenue for not abiding the law.
Transparency, information and consent are three essential principles of the GDPR and severity of Google breaching those principles justifies the amount and publicity of the fine, the CNIL said in a statement.
To meet the user’s expectations of high standards of transparency and control from the company Google is deeply committed and is examining its next steps for the consent requirement of the GDPR.
None Of Your Business (noyb) and La Quadrature du Net (LQDN), the two non-governmental organizations which had been mandated by 10,000 people to present the case, had lodged the complaint against the Google and the current decision came following it.
Silicon Valley will also be affected with his record setting penalty of the French authority whose tougher approach towards U.S. Internet companies and strict understanding of privacy rules are well known.
Google will have to come up with modification in its service provision practices as this decision is not merely a bunch of money but it also directly hits the company’s business model, Sonia Cissé, Managing Associate at Linklaters, said.