The Luxembourg regulator fined Amazon a record $ 886 million. The company itself called this decision unreasonable and said they plan to challenge it
Luxembourg's National Commission for Data Protection (CNPD) fined Amazon в‚¬746 million (about $885 million), the company said in a statement to the U.S. Securities and Exchange Commission (SEC).
According to Amazon, the commission issued the fine on July 16. The SEC alleges that the company is processing personal data in violation of EU data protection regulations. EU regulations require companies to ask for users' consent before using personal data, Reuters explained.
вЂњWe believe the CNPD's decision is unreasonable and intend to vigorously defend ourselves on this issue,вЂќ Amazon said.
Reuters and Bloomberg called the fine a record. Amazon itself said that there have been no data leaks and that no personal information about users has been disclosed to third parties.
The value of Amazon stock fell by 7.56% to $3.3 thousand in trading on July 30. The decline can be explained by the fact that the excitement around online shopping began to gradually subside. Against the backdrop of the coronavirus pandemic and the self-imposed isolation and quarantines imposed in connection with it, the popularity of Amazon has grown: people were forced to shop online. In the second quarter of 2020, the revenue growth rate jumped to 40% compared to 20% a year earlier. However, after vaccinations, many people revert to old habits, Bloomberg noted.
For the 12 months ended March 31, Amazon posted a net income of $26.9 billion, the company said. That's more than Amazon's total net income in the three years before the coronavirus pandemic began (2017-2019), The Wall Street Journal reported.