South Korea Fines Google and Meta a Combined $72M for Privacy Violations
Google has been handed a $49 million fine for privacy violations in South Korea, a $4.12 billion penalty for antitrust violations in Europe and faces fresh $25 billion class-action lawsuits in the U.K., and EU.
The South Korean privacy watchdog has slapped Google and Meta with a combined penalty of ₩100 billion (~$71.79 million) for infringing on users’ privacy and thus violating the country’s privacy law.
Alphabet’s Google was handed a ₩69.2 billion (~$49.68 million) fine by the Personal Information Protection Commission (PIPC). In comparison, Meta was penalized ₩30.8 billion (~$22.11 million), making the overall amount the highest imposed by the South Korean regulator.
Allegedly, Google and Meta didn’t obtain legal consent from users who visit their platforms or other websites before collecting online behavioral data or adequately apprise them about collecting.
For instance, PIPC’s notice said Google set the default option for data collection as “agree” when users signed up for its online services. “When subscribing to the service, Google did not clearly notify the fact that third-party behavioral information was collected and used, and used a method such as setting the default value to ‘Agree’ while hiding the setting screen (‘More options’),” PIPC stated.
PIPC concluded that Meta’s form is difficult to understand and that the company also failed to stay on the legal side of the country’s privacy affairs to serve users’ customized advertisements.
PIPC added that users have a hard time assessing what information from online services (both websites and apps) is being collected. Users also lose anonymity when third-party behavioral data is collected, something that could reveal their political views, health, physical, physiological and behavioral characteristics, and other sensitive information and open them to being targeted.
PIPC cited previous violations by Google and Meta that were highlighted by France’s Commission nationale de l’informatique et des libertés (CNIL) and Germany’s Bundeskartellamt (FCO).
Google and Meta disagree with PIPC’s claims and have 90 days to file an administrative lawsuit to appeal the multi-million dollar penalties.
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“While we respect the commission’s decision, we are confident that we work with our clients in a legally compliant way that meets the processes required by local regulations. As such, we do not agree with the commission’s decision, and will be open to all options, including seeking a ruling from the Court,” stated a spokesperson for Meta.
A spokesperson for Google said, “We disagree with the PIPC’s findings and will be reviewing the full written decision once it’s shared with us. We’ve always demonstrated our commitment to making ongoing updates that give users control and transparency while providing the most helpful products possible. We remain committed to engaging with the PIPC to protect the privacy of South Korean users.”
The fine imposed by PIPC on Google is the third setback to its parent Alphabet this week. On Wednesday, the General Court of the European Union upheld a 2018 antitrust ruling against the search and online advertising giant over allegations that it imposed unlawful restrictions on manufacturers of Android mobile devices and harmed competition along the way.
As such, Google will have to pay €4.125 billion (~$4.12 billion) in Europe, where it has a 67.25% mobile market share. The fine was reduced from the original €4.34 billion ($4.33 billion). Google told CNBC, “We are disappointed that the Court did not annul the decision in full. Android has created more choice for everyone, not less, and supports thousands of successful businesses in Europe and around the world.”
Meanwhile, publishers in the U.K. and EU are alleging that Google abused its market position in the ad-tech space. U.K’s Humphries Kerstetter, one of the law firms hired against Google, claimed that victims have collectively lost £7 billion ($8.08 billion). Dutch law firm Geradin Partners will represent EU-based publishers. Litigants are expected to claim €25 billion ($24.989 billion) through the fresh class-action lawsuits.
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