Meta's EUR 91 Million Penalty for Password Mismanagement: A Wake-Up Call for Privacy Standards
Meta's EUR 91 Million Dilemma
The lead European Union privacy regulator has imposed a hefty fine of EUR 91 million on social media powerhouse Meta, due to severe privacy breaches related to user password storage. The investigation, which commenced five years ago, revealed that some passwords had been stored without proper protection or encryption.
The Impact of Password Mismanagement
According to the Irish Data Protection Commission (DPC), it is a fundamental standard to refrain from storing user passwords in plaintext due to the risks associated with potential data breaches. Even though Meta responded promptly to this error identified during a security review in 2019, the repercussions of this practice are alarming.
- The DPC highlighted the expectation that big tech companies must adhere to stringent data protection protocols.
- This incident adds to the string of fines imposed on Meta under the General Data Protection Regulation (GDPR), totaling over EUR 2.5 billion since its introduction.
The DPC, possessing jurisdiction over numerous top U.S. internet firms in the EU, asserted that such fines are essential for enforcing compliance with privacy standards.
Future Implications for Tech Companies
This verdict serves as a crucial reminder for all tech giants regarding the necessity for rigorous data handling practices, as the spotlight intensifies on privacy regulations worldwide.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.