The General Data Protection Regulation (GDPR) is one of the world’s most challenging privacy and security laws. The law was introduced in 2018 and imposes multiple obligations on organizations handling the EU customers’ data. However, the GDPR’s complexity makes it challenging to implement and maintain. In 2023, top GDPR penalties raised concerns about the importance of compliance in Canadian businesses. Surprisingly, the GDPR fines for Meta in 2023 were almost equal to the total GDPR fines till January 2022. In 2024, the cumulative GDPR fines were around €5 billion when we published the articles. Thus, GDPR certification signifies the ongoing commitment to enforce data protection regulations to eliminate non-compliance risks.
Therefore, Canada’s competitive market requires GDPR certification to ensure data security. In the era of globalization, business websites attract visitors from EU citizens. Hence, GDPR certification in Canada ensures EU citizens’ data security and privacy. We will delve into the details of top GDPR penalties in 2023 that frightened the world and how GDPR certification helps Canadian companies grow their businesses.
TOP GDPR PENALTIES IN 2023
Let’s discuss some monumental GDPR violations in 2023 that increased GDPR compliance concerns.
1. Meta GDPR Fine (€1.2 Billion): In May 2023, the Irish Data Protection Commission (DPC) enforced a groundbreaking decision imposing a top GDPR penalty of €1.2 billion on the USA-based tech company Meta. Further, Meta, the parent company of some reputed social networking sites, fails to comply with GDPR compliance. Hence, transferring the personal information of European users to the USA without proper data protection measures led to this record-breaking fine. It is an important step forward in data protection law. The company does not follow the EU highest court’s Scherms II ruling from 2020, which means the EU-S Privacy Shield Framework was violated. Thus, Meta faced a considerable fine and stopped all foreign transfers. The authority allows five months to make the necessary changes.
Meta plans to appeal the decision, so the result of this court case will significantly affect the future of privacy rights and data transfers in the digital age. Other companies should take this fine very seriously because it shows that not following the GDPR rules can lead to substantial financial problems.
2. Amazon GDPR Fine (€746 Million): In 2021, the Luxembourg National Commission for Data Protection (CNDP) fined Amazon €746 million. A French privacy rights group that promotes
fundamental freedoms in the digital world got 10,000 people to make a complaint against Amazon in May 2018, which led to the fine. The CNPD started an investigation into how Amazon handles its customers’ data. The investigation found that Amazon’s advertising tracking system has some flaws. Again, a few things that must be followed in GDPR compliance were missing. For example, you must use clear, plain language to explain how, why, and by whom the data will be used. Again, local laws require the Luxembourg DPA to keep the case details secret until the appeal process ends.
Thus, the CNDP has not discussed or shared the case details with the public. However, Amazon overruled the allegations and said there had been no data breach and no third party accessed customer data.
3. TikTok GDPR Fine (€345 Million): One of the top GDPR penalties in 2023 was TIKTOK GDPR fines. TikTok was fined €345 million for GDPR violations, especially regarding handling children’s accounts. The DPC started an investigation in 2023 to find the discrepancy. Thus, it focused on young users and investigated how TikTok handled user data between July 31, 2020, and December 31, 2020. The investigation examined issues like platform settings, age verification, and communication with children.
The DPC revealed the violation of GDPR rights involving data processing, transparency, and fairness in the organization. Because of these violations, Ireland’s data protection authority informed TikTok to fix all the discrepancies within three months and demand a large administrative fine of €345 million.
4. WhatsApp Ireland GDPR Fines (€5.5 Million): The Ireland data protection authority fined WhatsApp €5.5 million in 2023 for GDPR violations. WhatsApp received a fine for non-compliance with GDPR rights. WhatsApp used clicking an “agree and continue” button as signing a contract, which was the legal reason for gathering personal data. However, customers complained that the company depended on consent, but instead of that, WhatsApp coerced people into accepting the new terms. The DPC claimed that WhatsApp asked for permission, but the company was unclear about their legal processing basis.
In response, WhatsApp changed the legal process of most of its users’ data from consent to reasonable interest. The company says this does not change its commitment to user privacy or how it handles user data.
5. CRITEO GDPR Fines (€40 million): On June 15, 2023, the French data protection authority CNIL fined CRITEO €40 million for not obtaining customers’ consent to process their data. Again, the company was fined for not informing customers about their rights and not giving them a way to use them properly.
However, CRITEO denied the CNIL’s allegations and claimed that the company had informed the customers about their data pricing activities.
Further, CRITEO challenged the decisions and claimed that the initial €60 million fine was too high compared to other penalties the CNIL has imposed for similar violations. Ultimately, their fine was decreased to €40 million, which is huge for any company.
HOW DOES GDPR COMPLIANCE HELP CANADIAN COMPANIES?
In Canada, GDPR compliance helps expand the territorial scope for businesses. Consequently, GDPR certification in Canada applies to Canadian organizations that process EU citizen’s data. Therefore, GDPR will also cover organizations that collect or use personal data to provide products or services to customers in the EU or monitor the EU customer’s behavior for business purposes. Thus, GDPR certification covers a lot of ground and could affect many Canadian businesses. GDPR certification in Canada probably covers a Canadian website. It allows European citizens to purchase the product or services or permits the Canadian website to use permanent cookies to track the behavior of European customers. However, it does not apply to Canadian organizations that do not offer services to EU customers.
1. Ensure Business Continuity: Top GDPR penalties suggested that Canadian companies must use data security technologies and procedures to ensure they follow GDPR Article 5, which lowers the risk of data breaches. In addition, it protects data and improves business continuity by making the data secure and available during emergencies.
2. Data Governance: Data governance helps businesses comply with rules like the GDPR by tracking data’s availability, usefulness, security, and integrity. Therefore, GDPR-compliant Canadian businesses probably have a clear data governance strategy and rules. In turn, companies gain business because of efficient and scalable data processing.
3. Increase Data Transparency: Finding where PII is stored is essential to complying with GDPR and appropriately protecting it. Discoverability and openness make it easier for businesses to find, control, and protect all GDPR rights.
4. Improve Reputation: The top GDPR penalties suggested that companies follow GDPR compliance to show their dedication to data security. Adhering to GDPR can also make the brand more trustworthy and give it an edge over rivals, whom customers may need to trust more to keep personal data safe.
5. Help in Data Migration: Following GDPR rules and being able to move data between systems go hand in hand. Businesses backup and restore their data regularly to ensure they follow GDPR rules.
WHAT CANADIAN COMPANIES SHOULD LEARN FROM TOP GDPR PENALTIES?
GDPR certification is a data security compliance to ensure the data privacy of EU citizens. It offers certain rights to customers regarding the data collection and handling process. Top GDPR penalties in 2023 suggested a few points:
Customer Consent: Under the GDPR, personal data can only be processed in particular ways, like carrying out a deal for legal reasons or with the customer’s consent. Thus, it must be a clear, specific, informed, and freely made indication, as the GDPR describes. It should be easy to understand and respond to customers. Children under 16 will need permission from a parent or guardian.
Data Governance and Accountability: Canadian organizations must implement controls for GDPR compliance, which shows their dedication to data protection. Thus, organizations must have data protection officers review data processing and operations. As part of the GDPR, companies must perform privacy impact studies for data processing that puts customers’ rights at high risk.
Right for Data Subjects: Companies must ensure data portability and the right to data subjects. Hence, the organization prohibits and limits automated decision-making, such as profiling. They must also enable the right to transparency, which signifies that individuals have clarity about their data collection and uses. Customers have the right to object to direct marketing using their information.
Breach notification: It is essential to inform the authority within 72 hours after the data controller notices the breach. The organization must notify the customers if data breaches risk their rights. Customers have the right and freedom to know about the incident.
Consequences of Non-Compliance: The top GDPR penalties suggest that a fine would be huge and suffocating for any organization. However, for serious violations, the fine will be around 30,000,000 Canadian dollars or 4% of the organization’s annual global sales. On the other hand, a moderate violation will lead to a fine of either 1,46,92,350 Canadian dollars or 2% of the business’s annual worldwide sales.
HOW DOES CERTPRO HELP CANADIAN ORGANIZATIONS IN GDPR COMPLIANCE?
TOP GDPR penalties in 2023 signify that companies face penalties for GDPR violations and non-compliance. However, most Canadian companies believe that GDPR certification and some Canadian privacy laws are similar; therefore, there is no need to implement GDPR again. Henceforth, Canadian businesses may need to take extra steps to control or process the personal information of EU data subjects in a way compliant with the GDPR.
With CertPro’s guidance and suggestions, Canadian companies can easily implement GDPR compliance. We offer our quality services in most cities in the country; you can visit our site for more specific information and guidance. The latest federal breach reporting rules indicate that GDPR certification can help Canadian businesses manage risks. Hence, step ahead to connect with CertPro and become GDPR certified in Canada.
FAQ
What are the penalties for violating GDPR?
Less serious violations can result in a punishment of €10 million or 2% of a company’s annual sales from the previous fiscal year, whichever is larger. More egregious offenses can result in a punishment of up to €20 million, or 4% of a company’s annual sales from the previous year, whichever is greater.
What is the GDPR law?
The EU General Data Protection Regulation (GDPR) defines how personal data of persons in the EU can be processed and transmitted. It ensures data safety and customer rights.
Do Canadian businesses need to be GDPR compliant?
GDPR will apply to the processing of personal data by Canadian organizations established in the EU, regardless of where data processing occurs. If Canadian organizations process and handle EU citizen data, business continuation is mandatory.
What are the consequences of non-compliance with GDPR?
Non-compliance can result in fines up to €20 million or 4% of the company’s global annual turnover, whichever is higher. Beyond financial penalties, non-compliance risks include reputational harm and operational disruptions.
How does GDPR compliance benefit Canadian businesses?
GDPR compliance ensures data security, boosts customer trust, and expands market opportunities by meeting international data protection standards. It also helps businesses streamline data governance and mitigate risks.
About the Author
Anuja Patil
Anuja Patil, an Executive Team Lead at CertPro, excels in guiding her team to deliver premier information security solutions. With a strong background in ISO 27001, SOC2, GDPR, and various other compliance standards, she ensures that projects are managed efficiently and security frameworks are continually optimized.
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