back to article Euro watchdog will try to extract $900m from Amazon for breaking data privacy laws

Amazon says a European Union privacy watchdog has mustered the temerity to demand a $885m fine for failing to comply with data privacy rules. "On July 16, 2021, the Luxembourg National Commission for Data Protection (CNPD) issued a decision against Amazon Europe Core S.à r.l. claiming that Amazon’s processing of personal data …

  1. Anonymous Coward
    Anonymous Coward

    But will they actually have to pay?

    Don’t these things often get appealed and appealed until all the original members who brought the case or are involved in it die of old age before ultimately being forgotten or dismissed with merely a token slap on the wrist?

    1. A.P. Veening Silver badge

      Re: But will they actually have to pay?

      Amazon can appeal, but the levels of appeal are pretty limited. Besides, the fine isn't the maximum possible fine yet and Amazon might also be convicted to pay the costs of the appeal.

      1. Peter2 Silver badge

        Re: But will they actually have to pay?

        Amazon can appeal, but the levels of appeal are pretty limited.

        Just saying, but Intel still haven't paid the file for paying the major distributors to not stock the AMD Phenoms from like 2007.

      2. teknopaul

        Re: But will they actually have to pay?

        "There has been no data breach, and no customer data has been exposed to any third party. "

        I would increase the fine with that response, it simply states "privacy is for everyone else, we are entitled to know everything as long as we tell no one else"

        Amazon clearly sees itself as above privacy, and simply by being Amazon it is entitled to know everything about everyone.

        It's about time someone increased a fine on appeal to these corps.

    2. Anonymous Coward
      Anonymous Coward

      Re: But will they actually have to pay?

      They might consider paying if it looks like it'll wind up costing them more than $899m to fight it somehow.

      1. Yet Another Anonymous coward Silver badge

        Re: But will they actually have to pay?

        These fines are really just a way of getting the companies to pay tax.

        The politicians/voters like it because the tax cheats got taken down

        The companies prefer it because they write it off against tax anyway and accounting tricks make it look like a one-off extraordinary payment, rather than a recurring tax bill - so the balance sheet looks better

        1. katrinab Silver badge
          Megaphone

          Re: But will they actually have to pay?

          You can't write off fines against your tax bill.

          1. low_resolution_foxxes

            Re: But will they actually have to pay?

            Not officially. But I believe it can be classed as a cost of doing business, ergo reducing your profit and lowering your tax bill.

            1. gandalfcn Silver badge

              Re: But will they actually have to pay?

              You mean like paying for whores and drugs?

              1. RegGuy1 Silver badge

                Re: But will they actually have to pay?

                You can buy whores and drugs on Amazon? Wow, let me log on now.

        2. Detective Emil

          Re: But will they actually have to pay?

          Not clear that Luxembourg sees this fine as being in lieu of tax: some years ago, Luxembourg cut a tax deal for Amazon. The EU objected, telling the country it had to collect the perceived shortfall, but this decision was recently overturned, following challenges from both Luxembourg and Amazon. (Not covered in El Reg, afaict.)

          So why did Luxembourg's CNPD make the eye-watering assessment? Just civil servants diligently doing what their job descriptions said was their job, I suspect.

    3. Anonymous Coward
      Anonymous Coward

      Re: But will they actually have to pay?

      IIRC, they need to pay the fine first, and they'll get reimbursed if they win the appeal.

    4. N2
      Facepalm

      Re: But will they actually have to pay?

      Of course not.

      It's the board of directors that should be fined, from their own pockets, although its small change for Jeff.

      Every fine, if it is paid along with legal costs is passed on to the customers.

      1. Graham Cobb Silver badge

        Re: But will they actually have to pay?

        Every fine, if it is paid along with legal costs is passed on to the customers.

        Only in a non-competitive market.

        In fact, many regulators and many other companies would be very happy if Amazon's prices went up a small amount. The customers may not be so pleased, of course,.

  2. Pascal Monett Silver badge

    "complaint by [..] a French privacy group"

    One thing I don't get : how is it that a French privacy group made a complaint to a non-european-institution in Luxembourg ?

    The CNPD is a purely Luxembourgish institution, it has no teeth at the European level as far as I can tell. It's home page makes no mention of Europe at all (neither does its Missions page), and the European flag is conspicuously absent from it, contrary to every other European Institution web site.

    I'm giddy at the idea that somebody is finally levelling a fine that represents a meaningful amount against an Internet goliath, but how does this work ?

    1. Splurg The Barbarian

      Re: "complaint by [..] a French privacy group"

      The fact is is "a purely Luxembougish institution" is irrelevant. Luxembourg is a member of the EU and as such is included within the GDPR framework. It can investigate companies under the GDPR legislation the same as the Irish ICO. It has found Amazon guilty and has issued a fine. Actions like this under under EU laws are EU wide irrespective of whether the institution has an EU flag emblem. The organisation is an EU organisation due to being an official organisation from an EU country.

      Amazon showing profits of $7.7bn could pay this without really affecting them, but at last its an amount that makes them notice.It could have been many times worse.

      1. TimMaher Silver badge
        Pint

        Re: Irish ICO

        Not the best example. I don’t see the Irish ICO hitting a tech company hard, if at all.

        Have a beer ——->

    2. Warm Braw

      Re: "complaint by [..] a French privacy group"

      Amazon (or the relevant bit of it) is legally domiciled in Luxembourg, so the national regulator in Luxembourg is the competent authority - much like Ireland for Facebook.

      1. Anonymous Coward
        Anonymous Coward

        Re: "complaint by [..] a French privacy group"

        Except that Ireland has a ready stack of wet noodles for misbehaving companies rather than fining them properly and so lose the employment and little tax income they get from them (at least, that's what I imagine the arguments to be over an expensive lunch).

        The only reason to become Information Commissioner in Ireland appears to be as a first step to be later employed by the mass offenders you are supposed to keep in line.

        1. veti Silver badge

          Re: "complaint by [..] a French privacy group"

          Between corporate taxes and income tax from employees, Facebook alone pays about 1% of Ireland's total national budget. That's before counting indirect taxes and multipliers from the economic stimulus.

          It's not chump change.

          1. seven of five

            Re: "complaint by [..] a French privacy group"

            It is, for facebook, who'd have to pay a lot more in most other EU countries, would they be domiciled there.

      2. elsergiovolador Silver badge

        Re: "complaint by [..] a French privacy group"

        Do they have any business need other than avoiding tax to domicile in Luxembourg? If so, why don't EU ask for compulsory strike off and claw back any tax?

    3. A.P. Veening Silver badge

      Re: "complaint by [..] a French privacy group"

      The European HQ of Amazon is in Luxembourg so it is up to the privacy authority of Luxembourg to investigate (and fine) GDPR complaints. It is the same reason the Austrian Max Schremm complained about Google in Dublin. Unfortunately, the Irish privacy authority still has to grow its teeth.

    4. Pascal Monett Silver badge
      Thumb Up

      Thank you for these responses, you've cleared the fog for me.

    5. gandalfcn Silver badge

      Re: "complaint by [..] a French privacy group"

      Hint. Luxembourg is in the EU.

      2nd. hint. France is in the EU.

      3rd. hint. Not all companies in the EU fly the EU flag.

      This is one of the reasons certain UK businesses wanted out if the EU- they didn't like social responsibilities and labour laws.

      1. SundogUK Silver badge

        Re: "complaint by [..] a French privacy group"

        "This is one of the reasons certain UK businesses wanted out if the EU- they didn't like social responsibilities and labour laws."

        You say that like you think it's a bad thing.

        1. RegGuy1 Silver badge

          Re: "complaint by [..] a French privacy group"

          We left because an unfortunately large number of voters here are racist. Don't believe me? Then just look at the comments here on Conservative Home, talking about English Language schools:

          Caroline Ansell: English language schools are crucial to our tourism industry. But their survival is at stake

          Remember the Tory party of today is a totally different beast. So many of my work colleagues, open minded, supportive of the capitalist means to run an economy would not now be welcome, if they show any support for immigration.

          Sad. Very sad.

          1. bombastic bob Silver badge
            Thumb Down

            Re: "complaint by [..] a French privacy group"

            too quickly threw the 'R' word (accusation) against those who disagree with you politically.

            -100 points.

            1. Disk0
              Megaphone

              Re: "complaint by [..] a French privacy group"

              did you just pull the the apologist centrist looking to mythologize racism card? “Too many people voted for Brexit because they are racist, and they are mostly Tories” isn’t that much of a stretch, and does not imply any and all. But hey, totally call out anyone observing this reality.

  3. Doctor Syntax Silver badge

    Given the ever decreasing signal to noise ratio of search results it would be pretty hard going to prove that Amazon made use of any information of any sort.

    1. heyrick Silver badge

      I keep getting suggestions and recommendations for stuff I've already bought.

      1. Richard 12 Silver badge

        Hence proving the fine is justified

        How else would they be targeting those adverts for toilet seats at the specific individuals least likely to buy more of them?

      2. elsergiovolador Silver badge

        There are people who only listen to music they already heard, so...

      3. gandalfcn Silver badge

        So did I. Until I told them where to stuff it. No problems now.

  4. aldolo

    maybe they are not going to pay but...

    ...they will notify the users about their practices.

  5. Anonymous Coward
    Anonymous Coward

    How much of the fine goes to the lawyers?...

    Joe Public won't see any of it.

    1. John Brown (no body) Silver badge

      Re: How much of the fine goes to the lawyers?...

      It'll go into the Luxembourg Treasury.

  6. Potemkine! Silver badge

    Non Sequitur

    Amazon's answer is appalling. The bad faith in the answer is a proof of guilt.

    With time going, fines for GDPR are higher and higher, as announced and expected. I hope CNPD's fine which is in line with Amazon's profits will set the tone for the ones to come.

  7. codejunky Silver badge

    Hmm

    If Amazon did wrong then they should be punished, but by this point it seems some desperate attack on US companies because the EU needs money and has no such success stories (as much as they wish they did).

    1. bombastic bob Silver badge
      Devil

      Re: Hmm

      no, it appears GDPR wasn't being followed. And it also seems that following GDPR would have been pretty simple.

      They *kind of* say that they target-ad you by showing products "related to your search" or "related to your purchase history". But it should be a bit more up front and blatant.

      1. codejunky Silver badge

        Re: Hmm

        @bombastic bob

        "no, it appears GDPR wasn't being followed."

        "The decision relating to how we show customers relevant advertising relies on subjective and untested interpretations of European privacy law, and the proposed fine is entirely out of proportion with even that interpretation."

        I would be inclined to believe Amazon based on how 'interesting' EU attacks against companies have been. Amazon could be in the wrong, I can see that happening too. But for now I will wait for more information before assuming them to be in the wrong.

        1. heyrick Silver badge

          Re: Hmm

          Remember they are American. So "subjective and untested interpretations of European privacy law" is a really weird thing to say over this side of the ocean. If the law says "this" then "this" applies. It doesn't need to be "tested" or have a judge "interpret" it. It's the rule, it's quite clear, it's what is supposed to be done; period, full stop, end of sentence.

          "and the proposed fine is entirely out of proportion with even that interpretation" - the maximum possible fine is 4% of annual global turnover, so if Amazon reported sales of $113.1bn and they're only asking for around €750M, they aren't going for the full whack. Again, it's quite clearly stated in the rules (and they use turnover not profits because of the creative accountancy that minimises the tax burden).

    2. Disk0

      Re: Hmm

      The amount isn’t even a blip on the EU economy, anyone who thinks we could fund an entire continent this way could do worse than learn about orders of magnitude…

      1. codejunky Silver badge

        Re: Hmm

        @Disk0

        "anyone who thinks we could fund an entire continent"

        The EU isnt an entire continent.

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