Amazon could be facing the largest GDPR fine on record as regulators conclude the retail has used customer data without their consent.
Amazon is facing a fine of more than €350 million by European privacy regulators regarding its collection and use of customer data, according to The Wall Street Journal.
Sources familiar with the issue have reported that EU member states were circulating a draft decision on the fine, but this could be delayed as some member states believe the fine should be even increased.
While the €350 million penalty would mark the largest fine issued under GDPR (General Data Protection Regulation), blitzing Google’s €50 million fine in 2019, it would still represent just two per cent of Amazon’s global annual turnover.
Under GDPR legislation regulators can fine a company up to four per cent of its global annual turnover, or €20 million, whichever number is larger.
A probe was conducted by Luxembourg’s data protection watchdog (CNDP), as Amazon’s European headquarters is based in the country, into whether Amazon was using customers data to inform targeted advertising without their permission, breaching GDPR rules.
European privacy rights activists have accused Amazon of conducting behavioural analysis and targeted advertising without first receiving consent.
It is the latest major potential major action by state officials to crack down on Amazon, and the wider ‘Big Tech’ industry’s largely unchallenged practices.
Yesterday the Financial Times reported that the UK’s Competition and Markets Authority (CMA)
is planning to launch a formal investigation into the retail giant, and is understood to have already been analysing its business for months.
Amazon has not responded to requests for comment on its potential fine.