Businesses operating in the European Union could be fined $20 million Euros or 4% of their global turnover for violating new privacy laws.
BELGIUM (Next Media) – Businesses operating in the European Union could be fined $20 million Euros or 4% of their global turnover for violating new privacy laws.
The fine amount is determined by whichever figure is larger. According to the New York TImes, 4% of Facebook’s global turnover would be around $1.6 billion.
According to Reuters, the law will apply to social media companies, banks, insurance firms, technology businesses and any enterprise which collects consumer data en-masse.
The new law means thats companies need to be more transparent about how they handle user data, get permission for it and gives users power to request for it to be deleted, or moved elsewhere.
U.S. Homeland Security Secretary Kirstjen Nielsen warned the law may give rise to more cyber threats. According to Reuters, she said users opting not to give information may hamper internet security research which relies on trends in this data.
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