Meta Fined €91M, Six EU Nations Demand Tougher DSA Action On Shein & Temu, And New Book Unveils Shift In U.S. Trade Policy
Birgul COTELLI, Ph. D.
Top 100 Thought Leader Thinkers360??Board Director??Transformation??Ethics??Technology ??Innovation??Governance Risk Compliance ??VR AR AI??Metaverse??LinkedIn Top Voice in VR (May-Aug 24)??Speaker
Meta has been hit with a €91 million fine by the European Union privacy regulator for mishandling user password storage, marking another significant penalty for the tech giant under the region’s stringent data protection laws.
Meanwhile, six EU countries are calling for tougher action under the Digital Services Act (DSA) against fast fashion and e-commerce platforms like SHEIN and Temu, citing concerns over transparency and consumer safety.
In a new book titled Walking Out, the evolving trade policy of the United States takes center stage, exploring its broader global consequences and how it is reshaping international commerce.
Together, these developments highlight the growing intersection of technology, regulation, and global trade shifts.
EU Privacy Regulator Fines Meta €91 M Over Password Storage
The European Union’s lead privacy watchdog has fined social media giant Meta €91 million ($101.5 million) for storing some users’ passwords without encryption, a violation of the EU's strict data protection laws. The fine was issued by Data Protection Commission Ireland (DPC), the main EU regulator for Meta due to the company's regional headquarters in Dublin.
The investigation was launched five years ago after Meta notified the DPC that it had inadvertently stored certain user passwords in 'plaintext,' meaning they were left unprotected and potentially vulnerable. At the time, Meta publicly acknowledged the incident, and the DPC confirmed that the unprotected passwords had not been exposed to external parties.
"It is widely accepted that user passwords should not be stored in plaintext, given the significant risk of abuse if such data were accessed," said Irish DPC Deputy Commissioner Graham Doyle in a statement.
A Meta spokesperson responded by emphasizing that the company took swift action to address the issue after it was uncovered during a 2019 security review. The spokesperson also assured that there was no evidence of the passwords being misused or improperly accessed.
Throughout the inquiry, Meta cooperated fully with the DPC, according to the company’s statement. However, the fine adds to Meta’s growing list of penalties in the EU. Since the introduction of the General Data Protection Regulation (GDPR) in 2018, Meta has been fined a cumulative €2.5 billion for various data breaches. This includes a record-breaking €1.2 billion fine issued earlier in 2023, which Meta is currently appealing.
The DPC plays a key role in enforcing EU privacy laws on major U.S. tech companies due to their operational bases in Ireland. Meta, as one of the most scrutinized firms under the GDPR framework, continues to face mounting regulatory pressure over its data handling practices, adding to a global conversation around the responsibility of tech giants to safeguard user information.
This latest fine serves as a reminder of the importance of securing sensitive data, particularly in an era where privacy concerns are paramount. While Meta has made efforts to address the error, the penalty underscores the stringent nature of GDPR and the European Union’s commitment to holding companies accountable for lapses in data protection.
Six EU Countries Call For Tough DSA Action Against Platforms Like Shein, Temu
Ahead of a competitiveness ministers meeting in Brussels, six European Union member states—Germany, Austria, Poland, Denmark, the Netherlands, and France—have called for a more unified and robust enforcement of the bloc's e-commerce regulations. In a joint letter addressed to the European Commission, the countries urged the EU to take "all necessary measures" to ensure that platforms designated as Very Large Online Platforms (VLOPs) comply with the Digital Services Act (DSA).
This call to action comes in the wake of Temu and SHEIN, two popular online marketplaces, joining a list of 25 major platforms that exceed 45 million monthly users in the EU. Other platforms on this list include global giants like Amazon, TikTok, and Meta. The DSA, which took effect for all online platforms in February 2024, aims to enforce greater transparency, combat illegal products, and protect consumers in the digital marketplace.
Enforcing the DSA: A Priority for the EU
The six countries emphasized the importance of enforcing the DSA rigorously, particularly against major e-commerce players like Temu and Shein. While designating these platforms as VLOPs is a significant step, the letter highlighted that "further steps in enforcement measures will be required." Among the key proposals is the digitization of product specifications, which would allow authorities to automatically detect compliance issues through digital product passports.
In addition to enforcing the DSA, the letter advocates for improved data collection on rule infringements, working closely with national digital services coordinators. This will enable the Commission to detect misconduct and impose effective sanctions on non-compliant platforms.
Strengthening Market Surveillance and Automation
The joint letter also calls for stronger market surveillance across EU member states, urging authorities to enhance their ability to intervene in e-commerce operations. The six nations propose greater use of automation, such as web-crawlers, to monitor online marketplaces and ensure that products sold—particularly those aimed at children—meet EU safety standards.
Another area of focus is customs and tax regulations. The countries are pushing for a review of VAT rules and the removal of the €150 duty exemption on imports, which they believe is crucial for better regulation of cross-border e-commerce. Germany, in particular, is encouraging Hungary, which holds the EU presidency, and the European Commission to prioritize these discussions in upcoming ministerial meetings.
Data Protection Concerns and E-Commerce Oversight
Beyond market surveillance, the letter emphasizes the need for stricter data protection rules for e-commerce platforms. The European Commission is expected to investigate how these platforms collect and use consumer data, a key concern in the context of broader efforts to protect personal information and promote transparency in online transactions.
The discussions in Brussels also touch on broader issues related to the competitiveness of the European single market. This includes a report by former Italian Prime Minister Mario Draghi (wikipedia.org/wiki/Mario_Draghi) on ways to boost the EU's industrial and business competitiveness amid increasing global challenges.
Ongoing DSA Investigations and Future Challenges
The European Commission has already launched several investigations under the DSA, including a probe into the practices of AliExpress, another major e-commerce platform. As enforcement of the DSA ramps up, platforms like Temu and Shein will face increased scrutiny, particularly as the EU works to modernize its regulatory frameworks for the digital economy.
For now, the six countries are pushing for coordinated action, signaling a strong desire for more effective oversight of online platforms and a fairer, safer digital marketplace for EU consumers. The ministers’ discussions in Brussels could lead to further reforms in how e-commerce is regulated and monitored across the EU.
Walking Out: New Book Unravels the Shift in America's Trade Policy and Its Global Consequences
In his new book, Walking Out: America’s New Trade Policy in the Asia-Pacific and Beyond, Shorenstein Asia-Pacific Research Center APARC Visiting Scholar Michael Beeman looks into the dramatic transformation of U.S. trade policy over the past decade. Once a champion of free and rules-based trade, the United States has shifted towards a more unilateral and protectionist approach, particularly since 2016. Beeman’s analysis offers timely insights into how these changes have not only altered America’s role in the global economy but also reshaped the international trading system that Washington itself had long upheld.
领英推荐
The Shift in U.S. Trade Policy
Beeman, a former Assistant U.S. Trade Representative for Japan, Korea, and APEC, argues that the U.S. has "walked out" on the very principles it once helped establish. He traces the roots of this shift to the financial crisis of 2007-2008, which fueled domestic political movements like the Tea Party and New Right, both critical of free trade agreements. By the time the Trump administration took office, a more confrontational, zero-sum trade policy had emerged, rejecting the long-standing belief that trade could be mutually beneficial.
The United States has since withdrawn from key international agreements, including the Trans-Pacific Partnership (TPP), and adopted a more protectionist stance in trade negotiations. Beeman sees this shift as emblematic of deeper internal political divisions, where extreme views on both the right and left have redefined the country's approach to trade. The result is a politicized and often inconsistent trade policy that has made it difficult to reach new international agreements.
The Impact of Domestic Politics
Beeman highlights the domestic political climate as the driving force behind these changes. He argues that America’s zero-sum politics, where trade is seen as a competition for limited resources, has led to the collapse of bipartisan support for open and free trade. This new perspective views trade agreements not as pathways to mutual benefit but as deals in which one party inevitably loses. According to Beeman, this shift has eroded the bipartisan consensus that once drove U.S. trade policy.
The book examines how both the Trump and Biden administrations have grappled with these internal divisions. While the Trump administration took a hardline stance, often leaving commitments unfulfilled, Beeman critiques the Biden administration’s attempts to redefine U.S. trade relationships. He argues that these efforts have often resulted in contradictory policies, reflecting the unresolved domestic tensions surrounding trade.
Walking Away from Global Commitments
A central theme of Beeman’s book is the United States’ decision to "walk out" on the rules and norms it had long promoted. This was most evident in its withdrawal from the TPP, a trade agreement designed to strengthen economic ties across the Asia-Pacific. Internal disagreements over stringent rules, particularly regarding auto manufacturing, highlighted the rift between America’s expectations of its trading partners and its willingness to compromise. The Biden administration’s later abandonment of the Indo-Pacific Economic Framework for Prosperity (IPEF) further underscored these ongoing tensions.
Beeman also explores how trade policy has become entangled in broader societal tensions. The same political divides that complicate domestic policy now shape America’s external trade strategies, leading to inconsistent approaches that confuse allies and trading partners alike.
Barriers to Progress
In addition to outlining the U.S.’s current trade policy challenges, Beeman warns that this zero-sum approach risks isolating the country from the global economy. He argues that this shift is not just a reaction to China’s rise but reflects a deeper ideological rift within American politics. Both the New Right and progressive left, despite their differences, share a common skepticism of free trade, seeing it as something that primarily benefits "them"—foreign competitors—at the expense of the U.S.
Beeman also points to specific policy failures, such as the inability to renew the Generalized System of Preferences (GSP), which provided tariff relief to developing countries, as evidence of the paralysis in U.S. trade policy. The lack of consensus on trade conditions has stalled progress, and without a unified strategy, Beeman warns, the U.S. risks further diminishing its influence on the global stage.
A Path Forward
While Beeman is critical of current U.S. trade policy, he also offers recommendations for how the country can regain its leadership role in the global economy. He advocates for a redefined approach that balances domestic priorities with international obligations. This includes reengaging with global trade partners, addressing the underlying political divisions at home, and promoting a more coherent, long-term trade strategy.
Beeman’s book is an essential read for those interested in understanding the dynamics shaping America’s trade policy and its global consequences. As the U.S. continues to navigate a turbulent political landscape, Walking Out offers a sobering assessment of the challenges ahead and the risks of continued disengagement from the global economy.
Conclusion
Walking Out highlights the urgent need for the United States to reconcile its domestic political divides and reestablish its role in the global trade system. Beeman warns that without a return to the principles of openness and cooperation that once defined its trade policies, the U.S. risks fostering new conflicts with both allies and adversaries, contradicting the original goals of the post-World War II trading system. The book serves as both a critique of current trade policy and a call to action for a more balanced and productive approach moving forward.
Conclusion
These recent developments underline the growing complexities at the intersection of technology, regulation, and global trade. Meta’s €91 million fine for mishandling password storage highlights the stringent nature of Europe’s data protection laws, particularly under GDPR, emphasizing the importance of safeguarding user data in an era of heightened privacy concerns.
Meanwhile, the call by six EU countries for stricter enforcement of the Digital Services Act (DSA) against e-commerce platforms like SHEIN and Temu illustrates the ongoing push for transparency, consumer safety, and market fairness in digital marketplaces.
On a broader scale, the evolving trade policy of the United States, as explored in Michael Beeman’s Walking Out, reflects how domestic political divides have reshaped the country's approach to international commerce. The U.S.’s shift toward protectionism and disengagement from key global trade agreements risks isolating it from the global economy, further complicating its relationships with both allies and competitors.
Together, these trends highlight the growing regulatory scrutiny faced by tech companies and the challenges governments face in adapting to the rapidly changing global digital and trade environments. As regulatory frameworks evolve, the balance between innovation, privacy, consumer protection, and global cooperation remains a critical issue for businesses and policymakers alike.
Meta European Union SHEIN Temu Data Protection Commission Ireland European Commission TikTok Amazon Wikipedia, the Free Encyclopedia AliExpress Shorenstein Asia-Pacific Research Center Stanford University
#GDPR #DataPrivacy #PasswordStorage #PasswordSecurity #TechRegulation #DigitalServicesAct #DSA #EcommercePlatforms #ConsumerProtection #Transparency #FastFashion #DataProtectionCommission #USATradePolicy #WalkingOutBook #GlobalTrade #TradePolicy #Protectionism #GlobalEconomy #USChinaTrade #Innovation #Regulation #Technology #OnlineMarketplace #DigitalEconomy #CrossBorderTrade #GlobalCommerce #RegulatoryCompliance #PrivacyConcerns
?--------------------------------------------------------------------
Found value in my BOARDS Newsletters series? I invite you to:
?? "Connect" and “Follow” me on LinkedIn
?? Hit the “Like” icon on my editions
?? "Subscribe" to my Newsletter Policymakers Board, a category of BOARDS Interconnected Insights
?? For our collective learning, add your valuable “Comments” below
?? and "Repost" to your network
?? Hit the “Bell” icon on my Profile to get notified of my Newsletters
Innovations | Deep Tech | HUMANS | Web3 Consulting | Culture | Diversity & Inclusion????
1 个月????
Investment Fund Sales & Distribution | UBS | Digital Client Acquisition & Relationship Management | LinkedIn Top Voice | Thematic Investment Conversation Starters | Connecting People & Opportunities | Community Activator
1 个月very interesting Birgul - how long would such action against Temu and Shein take typically? and what form would it take you think - a financial penalty? (i m curious where the money goes...)