WhatsApp: GDPR fine of $225M announced on WhatsApp

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Madhura Phadtare
Madhura Phadtare
Madhura is editor at Regtechtimes and is an expert in regulatory developments in the international scenario.

In today’s digital age, WhatsApp has emerged as a ubiquitous platform for communication. Deemed as an SMS alternative, WhatsApp revolutionized the way people connect with each other when it came into existence in 2014. This chat-oriented application minimized the need for traditional voice calls, making text-based communication the new norm.

However, recent developments have raised questions about WhatsApp’s commitment to safeguarding user privacy. The Irish Data Protection Commission (DPC) has imposed a staggering $225 million fine on WhatsApp for breaching privacy regulations. This penalty represents the largest fine ever issued by the Irish DPC and ranks as the second-largest under the European Union’s General Data Protection Regulation (GDPR) rules.

The regulatory landscape concerning data privacy is complex and evolving. The DPC serves as a critical national independent authority, mandated to protect the fundamental rights of European Union citizens by preserving their personal data. As the Irish Supervisory Authority for the GDPR, the DPC assumes various functions and powers connected to this crucial regulatory framework.

Why Was WhatsApp Fined?

The fine imposed on WhatsApp by Irish authorities is the result of allegations that the messaging giant failed to maintain transparency regarding the data it collects from its users. This penalty comes after an extensive investigation and enforcement process initiated in 2018. The inquiry also scrutinized the transparency surrounding WhatsApp’s data-sharing practices with its parent entity, Facebook. The sanctions proposed by the DPC were subsequently rejected by the European Data Protection Regulatory Board.

In a show of cross-border collaboration, the DPC obtained mutual assistance consent from the German Data Regulator. This agreement pertained to privacy obligations related to the sharing of personal data through WhatsApp and various Facebook-affiliated companies. One of the foundational principles of the GDPR is that entities processing individuals’ data must be explicit, forthright, and transparent about the use of this data.

Due to WhatsApp’s status as the lead supervisory authority under Article 56 of the GDPR, with the company’s primary European Union establishment situated in Ireland, the DPC initiated its inquiry based on its own volition in December 2018.

Furthermore, several regulatory bodies contested the Irish authorities’ draft decision. In response to the investigation, the Irish authorities furnished WhatsApp with a list of recommendations. WhatsApp was given 90 days to implement several changes aimed at enhancing transparency in their communications with users.

WhatsApp’s Stance on the Issue

WhatsApp has taken a firm stance against the decision issued by the Irish authorities. The company has decided to challenge the ruling, asserting its disagreement with allegations of insufficient transparency and privacy services. WhatsApp claims that it goes to great lengths to ensure the transparency and thoroughness of the information it provides to its users. It is committed to protecting users’ privacy and maintaining the security of their data. Under GDPR rules, companies can face substantial fines, potentially up to 4% of their global turnover, if they fail to keep user and customer data transparent and secure.

The fine imposed on WhatsApp by the Irish Data Protection Commission signals an evolving landscape in the realm of data privacy. Speculation regarding the surge in fines tied to compliance underscores the importance of safeguarding information in a transparent manner. Both the National Data Protection Authority (DPA) and the European Data Protection Board (EDPB) advocate for the publication of information related to fines, deeming it crucial to create a deterrent effect on potential wrongdoers.

Certified GDPR Professional

The Certified GDPR Professional course, offered by Riskpro Learning, is a highly regarded program designed to provide comprehensive training on the General Data Protection Regulation (GDPR). This certification is delivered through a video-based training program that is complemented by a thorough study material package. As a testament to its commitment to learners’ success, the program includes a valuable set of simulated exams featuring 500 questions specifically tailored to GDPR. This combination of video-based learning, study materials, and extensive practice exams equips professionals with the knowledge and skills required to excel in GDPR compliance and data protection, making it a valuable asset in today’s data-driven business landscape.

WhatsApp’s historic fine serves as a reminder of the growing significance of data privacy and the need for companies to rigorously adhere to regulations to safeguard user information effectively. The dynamic interplay between technology, data, and privacy will continue to shape the digital landscape and the regulatory environment surrounding it.

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