Google risks billion dollar fine under new EU data rules

Advertisement
By Reuters | Updated: 20 February 2013 14:55 IST
Google's latest privacy policy could land it with a fine of upto $1 billion under a new law allowing Europe-wide challenges to U.S.-based Internet giants, Europe's top justice official said on Tuesday.

Viviane Reding, the European Union's commissioner for justice, said rules being finalised by the European parliament and EU countries would allow a single EU data regulator to fine companies on behalf of all national watchdogs.

"The one-stop-shop regulator could threaten a company which does not obey the rules with a fine of up to two percent of global turnover," Reding told journalists.

Advertisement

Asked what kind of offence would receive the full two percent fine Reding pointed to Google. "The test case (Google) is a clear one."

The overhaul of the existing EU data protection regime could come into effect next year and would allow for bigger single fines.

Advertisement

It would also require all countries to have fines. Some states do not now levy penalties.

Google's total revenue in 2012 amounted to $50 billion which would make a two percent fine $1 billion.

Advertisement

Under current European rules, only individual countries can levy fines against companies that violate data privacy laws. Fines range from 300,000 euros to 600,000 euros.

Reding said that the ongoing dispute between EU data protection regulators and search engine Google showed the weaknesses of the current system, which relies on each country identifying and punishing privacy breaches.

Advertisement

She added that Google's decision to ignore a warning by regulators in October to change its privacy policy was a clear-cut case for a fine.

Google said it had not ignored warnings and had since amended its privacy policy.

European data watchdogs have said they plan to take "repressive" action against Google by this summer for its privacy policy, which took effect last March and allows the search engine to pool user data from across all its services ranging from YouTube to Gmail.

While regulators say Google's policy infringes users' privacy, the company said it is not breaking any laws.

The new law now would place greater responsibility on companies such as Facebook to protect users' information and threaten those who breach the code with fines.

U.S. companies have been lobbying heavily against the regulation which forces them to seek water-tight permission from users for collecting their data and also gives users more rights to obtain and delete their own data from services like Facebook.

The European Parliament is currently reviewing the rules drafted by the European Commission. They will then need the consent of EU member nations before becoming law, a process that could take up to a year.

© Thomson Reuters 2013

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: EU, Google, Internet, privacy policy
Advertisement

Related Stories

Popular Mobile Brands
  1. These OnePlus Smartphones Could Receive the ColorOS 17 Update in India
  2. Redmi Note 17 Pro Max Listed on NBTC Website Ahead of Imminent Launch
  3. Samsung Galaxy A55, Galaxy A35 One UI 9 Internal Testing Begins, Leak Suggests
  4. iOS 27 Beta Code Reportedly Reveals a Key Detail About the Foldable iPhone
  5. Samsung Galaxy S26 FE, Galaxy Tab S12 Reportedly Appear in Google App
  1. Offline UPI Payments With NFC Support Could Launch in India Soon
  2. Samsung Galaxy S26 Ultra's Privacy Display Feature Gets a Major Upgrade in One UI 9 Beta
  3. OnePlus N6x Design, Colour Options Teased in New Marketing Material Ahead of Imminent Launch in India
  4. OnePlus 11, Nord 4, and Newer Models Tipped to Receive the Android 17-Based ColorOS 17 Update in India
  5. Redmi Note 17 Pro Max Appears on Thailand's NBTC Certification Database, Might Launch Soon
  6. Apple’s First Foldable iPhone Reportedly Appears in iOS 27 Beta Code With a Multi-Battery Setup
  7. X for Android App Undergoes Major Design Overhaul, Enhanced Performance and Reliability
  8. Samsung Galaxy Buds Able to Reportedly Skip Galaxy Unpacked Launch; Could Debut in October
  9. Dell Alienware 16X Aurora, Alienware 16 Area-51 and Alienware 18 Area-51 Launched in India: Price, Specifications
  10. Samsung Galaxy A55, Galaxy A35 One UI 9 Test Builds Reportedly Spotted Ahead of Android 17 Rollout
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.