General Data Protection Regulation (GPDR), which is enacted in May 2018, is showing its effect on social media giants Facebook, Inc. (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) over data violation investigations in Europe. According to the news revealed on Monday by CNBC, Data Protection Commission (DPC) in Ireland has completed the study and pending for final decision.
Facebook to pay fine over $2 billion
DPC has investigated Twitter and Facebook’s WhatsApp on data privacy rules violation in Europe. DPC would pronounce its judgment by the end of this year. Helen Dixon, Chief Data Regulator in Ireland, would release a draft of its decision by the end of 2019. It would be the first decision affecting the multinational companies of the US after the enactment of GPDR in Europe.
Dixon would decide the penalty for both companies if they found violated data protection rules in Ireland. Both Twitter and Facebook could face fines up to 4% of the annual revenues worldwide on the possible data breaches. Facebook could end up paying over $2 billion in fiscal revenue for the year 2018.
Tech companies headquarters in Ireland
Several prominent tech companies have established their European headquarters in Ireland. DPC in Ireland is responsible for supervising data protection rules violations of these tech companies under the GPDR act. DPC has begun investigations over data privacy protection rules violation in several companies that include Google, Apple, Twitter, and Facebook.
Graham Doyle, Head (Communications) of DPC in Ireland, said investigations into WhatsApp over transparency is concluded. According to an annual report, DPC is studying if WhatsApp has used transparent ways to offer information on the app’s services to the non-app and app users.
Doyle said, DPC also completed the inquiry into Twitter. DPC has begun the investigation after the receipt of data breach notification from Twitter in early 2019. Dixon could request for more information from Facebook and Twitter before releasing the draft. She will send her decision to EU regulators. The commissioner would finalize her decision after receiving the feedback from the EU regulators.
Facebook could pay up to $5 billion in the US
The investigation has begun in 2018 into Facebook over the sharing of user’s personal information in 2018 with Cambridge Analytica. Facebook could face a fine of up to $5 billion on account of privacy violations in the US.