Amazon hit with record €746m EU data protection fine

Amazon has been hit with a record ‚Ǩ746m (£636m) fine over allegations its processing of personal data breached EU data protection laws.

The online retail giant disclosed the fine by the Luxembourg National Commission for Data Protection (CNPD) in a regulatory filing alongside its quarterly report, which also showed revenues falling short of forecasts.

The CNPD's decision was taken on 16th July, ruling “Amazon’s processing of personal data did not comply with the EU General Data Protection Regulation”.

Amazon has said the fine has “no merit” and it will defend itself “vigorously” against the decision, which came following an investigation prompted by a French privacy group's complaint. The charge eclipses a previous record ‚Ǩ50m fine France's data protection regulator levied against Google.

An Amazon spokesperson said: “Maintaining the security of our customers’ information and their trust are top priorities. There has been no data breach, and no customer data has been exposed to any third party. These facts are undisputed.

“We strongly disagree with the CNPD’s ruling, and we intend to appeal. The decision relating to how we show customers relevant advertising relies on subjective and untested interpretations of European privacy law, and the proposed fine is entirely out of proportion with even that interpretation.”

The company's second quarter report, which covers the three months to 30th June 2021, showed revenues up 27% from the same period last year to $113.1bn, just below the forecasted $115bn (£81bn). Profits increased 48% to $7.8bn (£5.6bn).

Amazon forecast revenue growth of between 10% and 16% for the third quarter.

The quarter's earnings were the last for the corporation under the stewardship of founder Jeff Bezos, who has now been succeeded as c.e.o. by Andy Jassy.