Yahoo Finance Europe launches probe into Facebook hack
Officials in the European Union have launched a formal investigation into a recent Facebook hacking incident to see if the tech giant failed to abide by new EU data privacy rules.
This marks the start of a process that could lead to a heavy $1.6bn fine against the tech company.
The Data Protection Commission in Ireland is leading the Facebook (FB) investigation.
“The investigation will examine Facebook’s compliance with its obligation under the General Data Protection Regulation [GDPR],” the agency said in an emailed statement.
It will probe whether the company implemented “appropriate technical and organisational measures to ensure the security and safeguarding of the personal data it processes.”
The EU’s strict GDPR rules went into effect in May 2018. Companies that break the rules could face penalties of up to 4% of their global annual revenue. In Facebook’s case, that would mean a maximum fine of $1.6bn.
Facebook revealed in late September that hackers gained login details for about 50 millions accounts. It’s estimated that less than 10% of compromised accounts belonged to Europeans, according to the Data Protection Commission.
Shares in Facebook were slipping by about 1% in premarket trading.
