While the fine will hardly break either of the two tech titans, the ruling could provide a precedent on data collection that could prove much more costly in the future if applied to everything else made available on app stores.
Data Protection
Certain types of personal data are very valuable to criminals, and can be very damaging to an individual or business if it falls into the wrong hands. As the world becomes more digital and more connected, more of this sort of data is generated and passed between various sources on a regular basis.
Government regulations and supervisory authorities aren’t just about keeping irresponsible parties in line. They also provide vital security guidance to every type of organization that handles sensitive personal, business or government information.
Data protection regulations also ensure that the end user has a transparent view of and a say in the processing of personal data. These safeguards play a significant role in everything from the preservation of civil rights to ensuring that democratic institutions function properly.
Some types of personal data are clear candidates for regulation: medical records, banking information, national ID numbers and so on. But some of these regulations also cover items that might seem relatively innocuous at first glance: home addresses, email addresses, website profile information and so on. For example, the European Union General Data Protection Regulation (GDPR) has stipulations about anything that is unique to an individual to include phone numbers and social media accounts. People have varying levels of privacy preference with these items, but they are often protected by regulation because they can be used for targeted scams and attempts at identity theft.
Given that regulations often take the size and customer count of businesses into consideration in terms of penalties and the scope of protection of personal data, compliance is particularly important for enterprise-scale organizations. You do not necessarily have to have an active business presence in a country or region; simply storing data on or moving it through servers there may subject you to their data protection rules.
The Cambridge Analytica scandal of 2018 is still not quite out of the news yet, as investigations around the world continue to wrap up. Australia's Information Commissioner has agreed to a $50 million AUD privacy settlement over the violations.
Italy was one of the first EU nations to take OpenAI and ChatGPT to task over data privacy violations, even banning the app from the country briefly, and it has now issued the bloc's first GDPR fine of this nature to the company.
A 2018 Facebook privacy breach incident that first drew complaints just after the GDPR went into force has finally resulted in the issuance of a penalty. The €251 million GDPR fine stems from a flaw in the platform's "View All" feature.
In addition to the $25.4 million antitrust fine, the CCI has ordered Meta to cease this element of cross-app user data sharing for five years. The order wraps up a probe that began in March 2021.
Bunnings tested out facial recognition technology in 63 of its New South Wales locations between November 6, 2018 and November 30, 2021, in what they said was a bid to deter a rash of crime. The national privacy laws regard facial data as highly sensitive biometric information.
The US tech companies oppose what they call an "undue expansion of government access," but also a requirement that they seek permission before being allowed to send local data overseas. The proposed data protection law also has vague and expansive terms here.
South Korea's Meta fine comes as the result of a four-year investigation into Facebook's data collection practices between 2018 and 2022. Meta was found to have collected user information about sexual orientation, political views and religion among other items.
What the new AI guidance boils down to is essentially the legal principle that it cannot be considered "reasonable" respect for or protection of privacy to enter personal information into an AI system, unless that AI has been expressly designed for this.
The noyb privacy complaint notes that Pinterest has invoked the "legitimate interest" exception to user consent for ad tracking, one of a small handful of such exceptions provided for by the GDPR. The problem for the company is that Meta has already tried this tack and failed.