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Emma Taylor, Thematic Intelligence Analyst at GlobalData, offers her view: “The record fine could be just the beginning. Data privacy will be increasingly scrutinized as the AI arms race among Big Tech picks up, as large amounts of data is essential for developing AI models. Data that is used to train AI systems will need to have strong data provenance, which can prove it does not pose a risk to user privacy but also does nqot perpetuate bias, threaten cybersecurity, or breach copyright laws.
“Although data protection laws were not designed to regulate AI, they are still applicable. This fine will act as a very loud warning shot for many companies, especially those exploring AI, which could also be affected by the muddy water surrounding transatlantic data transfers.”

Beyza Karakoy, Thematic Intelligence Analyst at GlobalData, offers her view: ‘Ever since the Privacy Shield was invalidated in 2020, there has been slow progress for a replacement EU-US data transfer framework, creating uncertainty for Big Tech companies whose entire model relies on exporting personal data. Meta’s fine represents the outcome of the challenge transatlantic companies face when it comes to complying with fragmented data protection laws globally.
“While there is ongoing discussion regarding the adequate protection of personal data under a new EU-US Data Privacy Framework, there remain concerns around US surveillance and whether the framework is capable of matching the level of data protection provided by the EU. The fine issued to Meta will increase the pressure to reach a consensus on a transatlantic data transfer deal that would provide greater certainty for businesses with worldwide operations. Meta has been granted a six-month transition period before the suspension of its data flows. However, its business will likely be significantly disrupted unless a new EU-US data transfer deal is agreed and adopted within this timeframe.”