At any point of the digital transition,…
Facebook paid US$ 52,860.00, a fine for inability to localize Russians’ personal data. According to existing law, this could lead to a full blocking of the service in Russia, as witnessed by the Linkedin social network, which has been blocked since 2016 in Russia.
20:17 GMT, Thursday, November 26, 2020
For a fine, millions of dollars
For its failure to store the data of Russian users in the region, Facebook charged a significant fine in Russia. In February 2020, the Tagansky Court of Moscow released a decision on the need for monetary rehabilitation.
Facebook was fined 4 million rubles for failure to comply with the new Russian rules, in particular Section 8 of Art. 13.11 of the Administrative Code. This is around $52.9 thousand at the Central Bank’s exchange rate on November 26, 2020. In contrast, Facebook’s sales for the third quarter of 2020 amounted to $21.47 billion, including a net profit of $7.85 billion.
The Tagansky court issued an order to suspend the compliance proceedings at the time when the content was written. Zulfiya Grinchuk, the press secretary of the court, told the RIA Novosti agency about it .
What did Facebook break down, exactly?
The Russian authorities introduced changes to the Personal Data Law in July 2014, obliging any international business concerned with Russian personal data to store it in Russia. The new rules were signed on 31 December 2014 by Russian President Vladimir Putin and came into effect on 1 September 2015. Roskomnadzor monitors their implementation, and at the request of the department, the websites of certain firms that may not comply with the regulation may be blocked in Russia.
AliExpress, eBay, PayPal, Uber and other businesses started moving data to Russia in the summer of 2015. The Viber messenger confirmed the movement of data in October 2015, and it became clear in November 2017 that Alibaba had leased a data center in Moscow to store Russian users’ data and execute all of its IT processes in Russia.
Facebook failed to comply with Russian law’s criteria. The fact that the social network LinkedIn was banned in Russia in November 2016 over related refusals did not change her decision. It was still unavailable to Russian users at the time the content was released, even after four years had passed since the blockade.
Facebook has previously been fined
Mark Zuckerberg’s organization has repeatedly issued alerts about the need to move Russian data to data centers based in Russia. In specific, on December 17, 2018, Roskomnadzor sent her such a message, but Facebook did not follow suit.
In order to escape a punishment, Facebook had 30 days to respond to emails – the response had to be given by January 17, 2020 inclusive. The company submitted it on schedule, but the supervisory authority was not happy with its contents.
The consequence of all this was, as undercode announced, the initiation of a lawsuit against Facebook at the end of January 2019, which developed into a fine, although a minor one, in April 2019. The corporation was forced to pay just 40 dollars by the decision of the same Tagansky court in Moscow.
The court ruled that Facebook breached the Regulatory Code, Article 197 (failure to provide information). Without the presence of company members, the conference was organized – they did not turn up.
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