Meta Stock Falls Premarket: EU Slaps Company With Record $1.3B Penalty For Data Privacy Violation
Portfolio Pulse from Anusuya Lahiri
Meta Platforms, Inc (NASDAQ:META) has been fined a record $1.3 billion by the Irish Data Protection Commission for user privacy invasion. The company has five months to suspend future transfers of personal data to the US and six months to stop unlawful processing and storage of EU data in the US.
May 22, 2023 | 10:51 am
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NEUTRAL IMPACT
Amazon was previously fined €746 million ($821.20 million) by the EU for data privacy violations.
Although Amazon was mentioned in the article, the focus is on Meta's current situation. The past fine on Amazon is not expected to have a direct short-term impact on its stock price.
CONFIDENCE 90
IMPORTANCE 10
RELEVANCE 20
NEGATIVE IMPACT
Meta Platforms faces a record $1.3 billion fine for user privacy invasion and must suspend future transfers of personal data to the US within five months.
The record fine and the requirement to suspend data transfers to the US within a short timeframe will likely have a negative impact on Meta's stock price in the short term. Investors may be concerned about the financial implications and potential operational challenges the company will face.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100