In a significant blow to Meta Platforms, the parent company of Facebook, an Australian court has ordered the tech giant to pay fines amounting to $20 million ($14 million) for unlawfully acquiring user data through a smartphone application that misleadingly claimed to prioritize user privacy while covertly harvesting personal information.
The Federal Court of Australia also ruled that Meta, along with its subsidiaries Facebook Israel and the now-defunct app Onavo, must bear the legal costs of $400,000 payable to the Australian Competition and Consumer Commission (ACCC), the body that initiated the civil lawsuit against the company.
The ACCC’s legal action against Meta stemmed from its investigation into the data practices of the social media conglomerate, revealing that the Onavo app, marketed as a tool to protect user privacy, was surreptitiously collecting and mining users’ personal data without proper disclosure or consent.
This landmark ruling by the Australian court sends a stern message to tech companies about the importance of transparency and compliance with privacy regulations. The court’s decision is seen as a significant step towards safeguarding user privacy in the digital era, as it sets a precedent for holding tech giants accountable for their data collection practices.
In response to this case and the growing concerns about digital privacy, the Australian government, under the leadership of Prime Minister Anthony Albanese, has unveiled a series of proposed amendments to the Privacy Act. The proposed changes aim to modernize the legislation, bringing it in line with the evolving landscape of digital technology and the need to protect individuals’ personal information from unauthorized exploitation.
The fines and legal costs imposed on Meta Platforms not only serve as a financial penalty but also highlight the importance of transparency and accountability in the tech industry. With governments worldwide increasingly focusing on data protection and privacy concerns, this ruling may prompt other countries to review their own privacy laws and take necessary steps to hold tech giants accountable for mishandling user data.
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