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{"id":31988,"date":"2023-05-12T21:44:55","date_gmt":"2023-05-12T21:44:55","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/05\/12\/major-decision-on-the-legality-of-facebooks-eu-us-data-transfers-is-due-to-be-adopted-today\/"},"modified":"2023-05-12T21:44:56","modified_gmt":"2023-05-12T21:44:56","slug":"major-decision-on-the-legality-of-facebooks-eu-us-data-transfers-is-due-to-be-adopted-today","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/05\/12\/major-decision-on-the-legality-of-facebooks-eu-us-data-transfers-is-due-to-be-adopted-today\/","title":{"rendered":"Major decision on the legality of Facebook\u2019s EU-US data transfers is due to be adopted today"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/05\/12\/facebook-data-transfers-final-gdpr-decision-adoption\/<\/a><\/br>
\nMajor decision on the legality of Facebook\u2019s EU-US data transfers is due to be adopted today<\/br>
\n2023-05-12 21:44:55<\/br><\/p>\n

\n

Reminder: Today is the deadline for the Meta\u2019s lead privacy regulator in Europe to adopt a final decision on a nearly decade-long complaint against Facebook\u2019s transfers of personal data from the EU to the U.S. that could see the company ordered to stop the flow of data.<\/p>\n

The Irish Data Protection Commission (DPC) confirmed to TechCrunch it will adopt its final decision today.<\/p>\n

However we understand there will be further delay (of just over a week) before the decision is made public. The date we\u2019ve been told the order will officially be published is May 22 \u2014 assuming details do not leak out beforehand.<\/p>\n

The delay in publishing the adopted decision is because Meta will be given time to review the document to identify confidential and\/or commercially sensitive info it may want redacted, we were told, and owing to a public holiday affecting another involved EU regulator.<\/p>\n

The May 12th date for adoption of the DPC\u2019s final decision on the complaint follows a timetable set by a dispute resolution decision taken by the European Data Protection Board<\/a> last month.<\/p>\n

Applying mechanisms baked into the General Data Protection Regulation (GDPR), the Board stepped in to settle disagreement between a number of EU regulators over the substance of the decision \u2014 taking a binding decision on Meta\u2019s transfers and giving the DPC one month to implement it.<\/p>\n

We don\u2019t yet know what\u2019s been decided since the Board\u2019s dispute resolution decision has not been made public as we\u2019re waiting on the final DPC decision (which will implement it) \u2014 so the fate of Facebook\u2019s European data flows still hangs in the balance.<\/p>\n

That said, Meta is widely expected to be ordered to suspend data flows, given the company received a preliminary suspension order from the DPC, back in fall 2020<\/a>.<\/span><\/p>\n

At that time the company obtained a stay on the DPC\u2019s procedure which helped delay the GDPR enforcement timetable until the Irish courts dismissed Meta\u2019s challenge. <\/span>Further delays kicked in later, when the DPC\u2019s draft decision on the case faced objections from other EU data protection authorities <\/span>\u2014 with those disputes settled finally by the EDPB\u2019s binding decision last month. <\/span><\/p>\n

This means the regulatory process is at least running out of road (but expect Meta to challenge any suspension order in the Irish courts).<\/span><\/p>\n

The company has continuously sought to play down the saga \u2014 claiming in its last statement that it \u201crelates to a historic conflict of EU and US law, which is in the process of being resolved\u201d. Which is a reference to a draft agreement between EU and U.S. lawmakers for a new high level transatlantic data transfer framework aimed at resolving the conflict between U.S. surveillance practices and EU data protection rights.<\/p>\n

However this EU-U.S. Data Privacy Framework, as the agreement has been named, is still in the process of being reviewed by EU institutions which\u00a0have raised concerns<\/a> that it does not have strong enough safeguards. And, just this week lawmakers, in the European Parliament reiterated a call for the Commission to take more time to improve the proposal<\/a> \u2014 suggesting there could be further delays in adoption of an agreement Meta appears to be banking on to save its data transfers bacon.<\/p>\n

While the data suspension question is the headline issue for this GDPR case, o<\/span>ther major elements to look out for in Ireland\u2019s final decision later this month include whether or not Meta will be ordered to delete European users data if it\u2019s found to have been unlawfully transferred to the U.S.<\/p>\n

Back in March, MLex reported<\/a> that at least two data protection authorities were pushing for that \u2014 and that Meta was lobbying EU institutions against any such move.<\/p>\n

Add to that, leaked internal documents last year<\/a> suggested the tech giant\u2019s data management practices are, to put it politely, a mess. So how easily Meta could identify and isolate European users\u2019 data, if ordered to delete it, is one big (expensive) consideration\/complication.<\/p>\n

\n
\n

Why is this such a huge deal? Well as a reminder, we’ve recently learned in federal court discovery that Facebook appears to have no way to retroactively fully purge users’ data. They said it will take as much as a year to pull all data for a user. This leaked doc got to it. 2\/4 pic.twitter.com\/g9kTTsYklY<\/a><\/p>\n

\u2014 Jason Kint (@jason_kint) May 11, 2023<\/a><\/p>\n<\/blockquote>\n<\/div>\n

Meta could also of course be issued with a fine if it\u2019s found to have unlawfully transferred data.<\/p>\n

The GDPR allows for penalties of up to 4% of global annual turnover, although \u2014 to date \u2014 Meta has had considerable success at being fined far less than the theoretical maximum.<\/p>\n

Privacy rights advocacy group, noyb \u2014 whose founder, Max Schrems, is behind the complaint against Facebook\u2019s EU-U.S. data flows \u2014 wrote to the EDPB in January<\/a> to complain over the size of a fine the DPC hit it with at the start of this year, over unlawful ads data processing, arguing the \u20ac390 million\u00a0<\/a>penalty was paltry vs the scale of the infringements (in fact he suggested it fell short by more than \u20ac3.5 billion).<\/p>\n

Ireland had actually proposed a far lower level of fine for that breach \u2014 of between \u20ac28 million to \u20ac36 million \u2014 but the regulator was forced to increase it in order to implement the EDPB\u2019s binding decision.<\/p>\n

Without that Board intervention Meta would have faced even weaker GDPR enforcement for unlawfully processing millions of Europeans\u2019 personal data for behavioral advertising. So it will be interesting to see what level of penalty (if any) is included in Ireland\u2019s final decision on Facebook\u2019s data transfers.<\/p>\n

That said, financial penalties imposed on tech giants are typically less interesting than operational orders which have the chance to force changes to abusive business models. And while Meta is still data-mining European users for behavioral ad targeting it was at least\u00a0forced to offer an opt out as a result of the aforementioned GDPR enforcement<\/a>. Something it has never offered before.<\/p>\n

How Meta might be forced to amend its business model to fix unlawful transatlantic data transfers is an open question.<\/p>\n

But there\u2019s no doubt it will throw everything it\u2019s got at fighting any order to suspend in the courts so it may well find a way to delay having to for act long enough for the goalposts to be moved by the arrival of a new U.S. data adequacy agreement.<\/p>\n

If not, the costs will be real.<\/p>\n

In an earnings call with investors last month<\/a> the company admitted that an order to suspend data flows from Europe could hit 10% of its global ad revenue.<\/p>\n

Obviously it\u2019s hoping it does not come to that \u2014 and banking on the new EU-U.S. data transfer mechanism being adopted just in the nick of time. (A company spokesman declined to discuss contingencies if it is ordered to suspend data flows, pointing back to the \u201cprogress\u201d policymakers have made towards a new pact.)<\/p>\n

But even if the high level deal arrives soon enough to prevent a Facebook shut down in Europe from happening this year, Schrems suggests the new high level framework is \u201clikely\u201d to be struck down by the bloc\u2019s top court, as the two predecessor arrangements were \u2014 so he estimates Meta would only buy itself another \u201ctwo years or so\u201d before the issue rears its head again.<\/p>\n

For a longer term solution, he has suggested Meta will need to federate Facebook\u2019s infrastructure<\/a>. But such a major retooling of its business would obviously be very expensive too.<\/p>\n

\u00a0<\/p>\n<\/p><\/div>\n

<\/br><\/br><\/br><\/p>\n

Science, Tech, Technology<\/br>
\n<\/br>
\nSource:https:\/\/techcrunch.com\/2023\/05\/12\/facebook-data-transfers-final-gdpr-decision-adoption\/<\/a><\/br><\/br><\/p>\n","protected":false},"excerpt":{"rendered":"

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