As the world's best investment manager and financial market journalist, I bring you the latest news on Meta's €91 million fine in Europe. Ireland's Data Protection Commission has reprimanded Meta after a multi-year investigation into a 2019 security breach. This penalty underscores the importance of privacy compliance in today's digital world.
The GDPR requires that personal data be appropriately secured, and Meta failed to meet this standard by storing user passwords in plaintext. This created a risk that sensitive information stored in social media accounts could be accessed by third parties. The DPC found that Meta also failed to report the breach within the required timeframe and properly document it.
Meta claims it took immediate action to fix the error in its password management processes and proactively notified the DPC. However, this latest penalty adds to the tech giant's track record of privacy violations, with this fine being significantly higher than a previous one in 2018.
Investors should take note of these developments as they reflect the growing importance of data protection and privacy compliance in the digital age. While a €91 million fine may seem substantial, it is just a fraction of Meta's annual revenue. Nevertheless, investors should monitor how these penalties impact Meta's operations and reputation moving forward.