Is Facebook compliant with GDPR?

The General Data Protection Regulation (GDPR) is a regulation that went into effect in the European Union in May 2018. It imposes strict rules on companies in terms of how they collect, process, store and protect personal data of EU citizens. GDPR applies to any company that handles EU citizens’ personal data, including Facebook.

Since Facebook has millions of users in the EU, it is required to comply with GDPR. Failure to comply can result in heavy fines of up to 4% of global annual turnover or €20 million, whichever is higher. This has raised questions around whether Facebook is fully compliant with GDPR.

What is GDPR?

GDPR stands for General Data Protection Regulation and it replaces the Data Protection Directive 95/46/EC. Here are some key facts about GDPR:

• It aims to give EU citizens more control over their personal data and impose strict rules on companies holding or using EU citizens’ data.
• It applies to companies processing data of EU citizens, even if the company is not located in the EU.
• It requires companies to have lawful basis for processing personal data and get explicit consent from users before collecting any data.
• It gives users the right to access their data, correct inaccuracies, delete data and download their data.
• It requires companies to report data breaches within 72 hours and to store data securely.
• Non-compliance can result in fines of up to 4% of global annual turnover or €20 million.

In summary, GDPR aims to return control of personal data back to citizens and reshape how companies approach data privacy.

Requirements for Facebook under GDPR

As a company that processes significant amounts of EU citizens’ personal data, Facebook must comply with GDPR requirements. Here are some of the key requirements:

• Obtain valid consent from users: Facebook must clearly explain how it uses data and get explicit opt-in consent from users before collecting or processing data.
• Allow users to access their data: Facebook must allow users to access, correct, delete and download their data.
• Implement privacy by design: Facebook must implement technical and organizational measures like pseudonymization and encryption to protect user privacy.
• Report breaches: Facebook must report data breaches to authorities within 72 hours of becoming aware of them.
• Appoint a Data Protection Officer (DPO): Facebook must designate a DPO to oversee compliance.
• Conduct Data Protection Impact Assessments (DPIAs) for high-risk processing activities.

In addition, Facebook must clearly explain its data processing activities in its privacy policy and terms of service. It must also implement adequate security to protect user data and regularly train employees on GDPR.

Facebook’s GDPR compliance efforts

Since GDPR came into force, Facebook has undertaken several steps to comply with its requirements:

• Updated its terms of service and privacy policy to explain how it uses and protects user data.
• Obtained explicit consent from users to use data for personalized ads and other purposes.
• Introduced new tools allowing users to access, download and delete their Facebook data.
• Appointed a Data Protection Officer and created a GDPR compliance team.
• Implemented new processes like Data Protection Impact Assessments for high-risk activities.
• Improved security measures like encryption and two-factor authentication.
• Provided GDPR training to all employees.

These measures demonstrate Facebook’s efforts to comply with key GDPR requirements around transparency, consent, data subject rights and security.

Ongoing criticisms and investigations

Despite Facebook’s efforts, the company continues to face criticism and investigations related to GDPR compliance:

• Facebook has been criticized for not making privacy settings and tools easy enough to find and use.
• There are concerns around whether users genuinely understand how their data will be used based on Facebook’s consent flows.
• Facebook faces allegations of failing to fully explain its data sharing activities with third parties in its privacy policy.
• The company has been accused of making it very difficult for users to delete their accounts and data.
• Facebook’s massive Cambridge Analytica data scandal raised questions around whether it had adequate security in place.
• In 2019, Facebook was fined €50 million by French authorities for making its privacy policy too hard to understand.

In addition, Facebook is currently under investigation by the Irish Data Protection Commission for potential GDPR infringements relating to data transparency, improper data sharing with third parties, and its responsibility as a data processor.

Clearly, despite its efforts, Facebook still has work to do to fully comply with GDPR expectations.

Key areas where Facebook could improve compliance

Based on the ongoing criticisms and investigations, here are some key areas where Facebook could improve its GDPR compliance:

1. Make privacy settings, tools and policies easier to find and understand for users.
2. Strengthen consent flows to ensure users genuinely understand how data will be used.
3. Provide more granular options for users to customize data collection and sharing.
4. Make it easier for users to access, export, delete and correct their data.
5. Improve transparency around data sharing practices, especially with third parties.
6. Conduct more rigorous risk assessments for high-risk data processing activities.
7. Implement stricter controls around access, use and transfer of user data within Facebook workforce.
8. Strengthen security measures like encryption and multifactor authentication.

By focusing on these areas, Facebook can better comply with GDPR principles around transparency, consent, data minimization, accuracy, storage limitation and integrity & confidentiality.

Potential consequences if Facebook violates GDPR

If investigations find that Facebook has seriously violated GDPR, the company faces significant consequences:

• Financial penalties up to 4% of global annual turnover – which was $117 billion for Facebook in 2022.
• Private lawsuits from users whose rights were infringed.
• Investigations by data protection authorities in other EU countries.
• Orders to cease processing data of EU users. This could essentially shut down Facebook operations in Europe.
• Reputational damage from being seen as an untrustworthy company.
• Loss of users who choose other platforms offering better privacy protection.

In summary, lack of GDPR compliance could have catastrophic effects on Facebook’s business and finances. It is in the company’s interest to avoid violations at all costs.

Conclusion

Facebook has taken significant steps to comply with GDPR requirements around transparency, consent, access rights and security. However, ongoing investigations and criticisms suggest the company still has work to do in areas like making privacy controls easier to use, explaining data sharing practices, and allowing users more control over their information.

Failure to improve its compliance could result in hefty fines, lawsuits, ban from the EU market and immense reputational damage. While no organization is perfect, Facebook must continue demonstrating its commitment to GDPR principles. This will maintain user trust and avoid the severe consequences of violations. As EU regulators continue monitoring Facebook’s practices, the coming months will reveal whether its efforts are adequate for full GDPR alignment.