Italy’s competition authority has imposed a fine of 3.5 million euros on Meta for failing to be transparent in its data usage and management of Instagram and Facebook accounts. The AGCM watchdog described this as a case of “unfair commercial practices”.
The watchdog specifically pointed out that Meta did not promptly inform Instagram users registered via the web about the use of their personal data for commercial purposes. Furthermore, it criticized Meta for its inadequate handling of the suspension of Facebook and Instagram accounts. In particular, Meta was faulted for not clarifying the criteria for suspending accounts and failing to provide users with information on how to challenge such suspensions.
The Italian watchdog identified several areas where Meta fell short, including the lack of clarity on the decision-making process behind suspensions, the absence of guidance on contesting suspensions, and the short window of opportunity given to users to challenge suspensions. Additionally, Meta was chided for not offering alternative dispute resolution mechanisms beyond the company’s own channels.
Although Meta has contested the authority’s decision, it has acknowledged making changes since August 2023 to address the concerns raised by the watchdog. These changes include enhancing transparency regarding data usage for advertising on Instagram and improving the information available to users regarding the appeals process for account suspensions.
The fine imposed on Meta by the Italian competition authority serves as a reminder to tech companies of the importance of transparency and accountability in their data practices. While Meta has taken steps to rectify its shortcomings, the incident underscores the need for ongoing vigilance and regulatory oversight in the digital sphere. It is imperative for companies to prioritize user privacy and provide clear and accessible information on how user data is utilized.
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