Meta Platforms Inc. META has been fined $15 million by South Korea for unlawfully gathering sensitive personal information from Facebook users.
What Happened: The South Korean Personal Information Protection Commission found Mark Zuckerberg led Meta guilty of illegally collecting sensitive personal information from Facebook users, including details about their political views and sexual orientation. This information was then shared with thousands of advertisers, reported the Associated Press.
The commission’s four-year investigation revealed that Meta had collected sensitive information about nearly 980,000 Facebook users from July 2018 to March 2022. This included their religion, political views, and whether they were in same-sex unions. The company then shared this data with around 4,000 advertisers.
According to South Korea’s privacy law, companies are prohibited from processing or using such data without the specific consent of the individuals involved. The commission also found that Meta failed to implement basic security measures, leading to data breaches affecting at least 10 South Korean Facebook users.
This is not the first time that 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.
Why It Matters: This fine is the latest in a series of penalties against Meta by South Korean authorities, reflecting 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.
Despite these legal challenges, Meta has been making significant moves in the tech and defense sectors. Earlier this week, the company announced a partnership with Amazon and Microsoft to provide its Llama artificial intelligence models for national security and defense applications.
Meanwhile, analysts have been 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. The firm also raised ad revenue estimates on product traction and anticipates Meta’s AI-driven ad improvements to play out in 2025.
Price Action: Meta stock closed at $572.43 on Tuesday, rising by 2.10%, for the day. In after-hours trading, the stock decreased 0.42%. Year to date, the stock has gained 65.30%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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