The fine issued by the European Union against Amazon for breach of the RGPD amounts to 746 million euros, becoming the highest registered to date for this type of infraction.

The sanction is the product of a collective legal management carried out by the Quadrature du net in 2018, when the French movement for privacy rights denounced the electronic commerce giant for irregular conduct in the handling of advertising. The Quadrature asserted that the US company directs advertising towards its users even though they have not given their full consent to do so.

It took three years for the corresponding bodies to manage and to study the complaint. When it seemed that it would be dismissed, the CNPD – the data protection authority of Luxembourg and the country where Amazon maintains its headquarters for Europe – issued a ruling in favor of the Quadrature.

With this ruling, the body in charge of supervising the activity of the company in the EU not only imposed the fine; it also demanded a review of the company’s advertising practices.

The decision has generated great commotion due to the amount that the fine represents, which exceeds by more than 600 million euros the one imposed on Google last year by about 99 million euros and was considered the highest one.

For Amazon, this sentence is very worrying and counterproductive, not only because of the exorbitant amount. It is also alarmed by the investigation process on the review of the company’s practices and behaviors, for which it plans to appeal the fine, arguing that there is no data breach or breach.

This was indicated by company representatives through a statement: “There has been no data breach, and no customer data has been exposed to any third party. These facts are indisputable. We totally disagree with the CNPD ruling, and we intend to appeal. The decision regarding how we show customers relevant advertising is based on subjective and unproven interpretations of European privacy law, and the proposed fine is totally disproportionate even with that interpretation.”

M. Rodríguez

Source: marketing4ecommerce.net

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Google will implement changes to its global advertising system to prevent abuse of market dominance. The move is part of an unprecedented agreement by the organization with the French Antitrust Authority. The settlement also includes a fine of 220 million euros for monopolistic practices in the industry.

Isabelle de Silva, France’s antitrust chief, said: “The decision to sanction Google is of particular importance because it is the first in the world to focus on the complex algorithmic auction processes on which the online advertising business is based.”

The sanction of the giant is a historical fact that could become a before and after for publishers of web pages and other applications for mobile devices, due to the benefits they obtain from online advertising.

Dominant position

The development of the investigation demonstrated the preferential treatment that the company gave to its ad technologies, placing its competitors at a disadvantage, and which allowed it to increase its dominance and position in the world market.

Google privileged its DFP advertising server and the AdX platform, responsible for organizing the auction processes. This platform supplied the bidding price offered by the competition, and Google increased the bidding price, reducing the attractiveness of third-party advertising services.

M. Rodríguez

Fuente: hipertextual.com

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