Regulatory Compliance for Companies
Whether operating in a large or small scale, companies are expected to comply with regulations in their home country. However, as companies expand their network to other continents, compliance becomes more complicated. It requires attention not only to their home country’s regulations but also to the new places they will develop.
Unfortunate Consequences of GDPR Violation
Companies who violate regulations, such as the General Data Protection Regulation (GDPR), face severe consequences that can cost them significant fines. Recently, Meta was penalized with one of the largest fines in its history amounting to 1,200 million euros for violating GDPR. The penalty is a hard blow, particularly for Mark Zuckerberg, Meta’s founder.
Challenges in Circulation of Data
One of the significant problems faced by companies when they come to Europe from other continents is the circulation of data. Companies are aware of compliance regulations. However, some of these companies seem to break them, knowing that the punishment can be massive.
Europe is serious about the protection of user data. The latest scandal has been carried out by Meta, who has been penalized for collecting user data from WhatsApp, Facebook, and Instagram that has been transferred from Europe to the United States.
Sanction Imposed on Meta IE
Andrea Jelinek, President of the European Data Protection Board, stated that infringement of Meta is serious since it is systematic, repetitive, and continuous. Facebook has millions of users in Europe, so the volume of personal data transferred is enormous. The unprecedented fine is an essential signal to organizations that serious violations have far-reaching consequences.
Implications for Social Media Companies
This penalty is a warning for other competitors that operate in Europe. TikTok has also been accused of a similar problem. This type of sanction sets an example of what could potentially happen to any company in the future.
Social networks use the data collected from their users to survive, indicating the interest that companies have in an agreement to transfer data from one continent to another without fear of sanctions. Despite being more lax in the United States, Europe takes its laws very seriously. Companies need to be mindful of compliance regulations to avoid facing severe penalties like Meta’s.