EU privacy watchdog slaps Amazon with $887 million fine

The Luxembourg National Commission for Data Protection said Amazon's personal data processing did not comply with the EU General Data Protection Regulation, Amazon stated in a 10-Q filing with the Securities and Exchange Commission, on Friday.The commission has ordered Amazon to revise specific undisclosed business practices.

The fine issued on Amazon will be the biggest monetary penalty the EU's General Data Protection Regulation (GDPR) has ever imposed on any company.

The e-commerce company has since been issued with a fine of 746 million euros ($887 million) by the European Union. The company didn't immediately respond to the allegations by the EU, however, in the filing it said: "We believe the CNPD's decision to be without merit and intend to defend ourselves vigorously in this matter."

Amazon's EU headquarters is in Luxembourg which makes its operations subject to the country's CNPD regulatory body. 

Last fall, Amazon was charged with antitrust issues by the European Commission over alleged misuse of data, using non-public information to favor Amazon's retail business over third-party businesses. The case alone could fine Amazon up to 10% of its annual global revenue.

Data misuse or breach has become a hot topic in many developed countries, and governments are doing everything possible to ensure that tech companies manage their citizens' data with utmost respect. The EU's GDPR went into effect in May 2018, and it mandates companies to disclose what data they collect from users and how the data will be used. Companies must also delete any individual's data on request, and allow users download their personal data.

In its earning report results posted on Thursday, Amazon posted its third $100 billion in a row. Its revenue grew 27% year over year to $113.08 billion. Net income jumped nearly 50%, to $7.8 million.

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