## Meta Faces $15 Million Fine in South Korea for Facebook Privacy Violations
Meta Platforms Inc. (META) has been hit with a hefty $15 million fine by South Korean authorities for breaching user privacy on Facebook. The South Korean Personal Information Protection Commission found Mark Zuckerberg’s company guilty of unlawfully collecting sensitive personal information from Facebook users without their explicit consent. This data, which included details on political views, sexual orientation, and religious affiliations, was then shared with thousands of advertisers.
The commission’s four-year investigation revealed a disturbing pattern. Meta collected this sensitive information from nearly 980,000 Facebook users between July 2018 and March 2022. This breach of trust violated South Korea’s strict privacy laws, which prohibit companies from processing or using such data without explicit consent. The investigation also found that Meta failed to implement basic security measures, resulting in data breaches affecting at least 10 South Korean Facebook users.
This isn’t the first time Meta has faced penalties in South Korea. In 2022, the company was fined a combined 100 billion won ($72 million) for tracking consumers’ online behavior without their consent and using their data for targeted advertisements. This latest fine reinforces a growing global trend of increased scrutiny over big tech companies’ handling of private information. In September, European regulators also fined Meta over $100 million for a security lapse in 2019.
Why This Matters
The fine underscores the growing global concern over the ethical and legal implications of how big tech companies manage user data. While Meta has faced a barrage of fines and investigations, the company continues to push forward in the tech and defense sectors. Earlier this week, Meta announced a partnership with Amazon and Microsoft to provide its Llama artificial intelligence models for national security and defense applications. Analysts are bullish on Meta’s AI capabilities, with Bank of America labeling it an “AI Story” and pointing to the rapid and growing adoption of Llama and Meta AI.
Market Impact
Meta’s stock closed at $572.43 on Tuesday, rising by 2.10% for the day. In after-hours trading, the stock decreased 0.42%. Despite the legal hurdles, Meta’s stock has seen a strong year-to-date gain of 65.30% according to data from Benzinga Pro. While the fine is significant, investors are cautiously optimistic about Meta’s future prospects, particularly its strong AI initiatives.
This incident serves as a stark reminder to all tech giants of the importance of prioritizing user privacy and complying with data regulations. The ongoing scrutiny and fines highlight the need for a more responsible approach to data collection and utilization, especially within the digital advertising landscape.
