Advertisement

Home / World / EU slaps Amazon with $886.6 million fine

EU slaps Amazon with $886.6 million fine

The Luxembourg National Commission for Data Protection (CNPD) imposed the fine on Amazon in a July 16 decision, the company disclosed in a regulatory filing on Friday
 Amazon will appeal the fine, according to a company spokesperson. The e-commerce giant said in the filing it believed CNPD’s decision was without merit. CNPD did not immediately respond to a request for comment.
Amazon will appeal the fine, according to a company spokesperson. The e-commerce giant said in the filing it believed CNPD’s decision was without merit. CNPD did not immediately respond to a request for comment.
Shutterstock

Reuters   |   New York   |   Published 31.07.21, 12:18 AM

Amazon.com Inc has been hit with a record $886.6 million (746 million euros) EU fine for processing personal data in violation of the bloc’s GDPR rules, as privacy regulators take a more aggressive position on enforcement.

 The Luxembourg National Commission for Data Protection (CNPD) imposed the fine on Amazon in a July 16 decision, the company disclosed in a regulatory filing on Friday.

Advertisement

 Amazon will appeal the fine, according to a company spokesperson. The e-commerce giant said in the filing it believed CNPD’s decision was without merit. CNPD did not immediately respond to a request for comment.

 EU’s General Data Protection Regulation, or GDPR, requires companies to seek people’s consent before using their personal data or face steep fines.

Globally, regulatory scrutiny of tech giants has been increasing following a string of scandals over privacy and misinformation, as well as complaints from some businesses that they abuse their market power.

 Alphabet’s Google, Facebook Inc, Apple Inc and Microsoft Corp have drawn heightened scrutiny in Europe.

In December, France’s data privacy watchdog handed out its biggest ever fine of 100 million euros ($118.82 million) to Google for breaching the nation’s rules on online advertising trackers.

Growth slows

Amazon on Thursday said sales growth would slow in the next few quarters as customers venture more outside the home, a tepid start to CEO Andy Jassy’s reign after 27 years with Jeff Bezos at the retailer’s helm.

 Spending growth by Prime members, Amazon.com’s most valuable customers, has eased as well, the company said. Shares fell 7 per cent in after-hours trade.

 More than a year into the Covid-19 pandemic, Amazon’s financial lustre is fading slightly. When brick-and-mortar stores closed, Amazon posted record profits, drew more than 200 million Prime loyalty subscribers, and recruited over 500,000 workers to keep up with surging demand.

 Now, the company is facing the tough task of climbing higher still.

While revenue surged 44 per cent in the first quarter of this year, that figure dropped to 27 per cent for the period ended June 30. Sales may only rise as much as 16 per cent in the third quarter, Amazon said.



Advertisement
Advertisement
Advertisement
 
 
 
Copyright © 2020 The Telegraph. All rights reserved.