Facebook agrees to pay fine issued by ICO for failings in data compliance
Information Commissioner’s Office (ICO) fines Facebook £500,000 for suspected failings related to compliance with the UK data protection principles covering lawful processing of data and data security
The formal investigation into alleged misuse of personal data by the ICO in 2017 has resulted in Facebook being fined of £500,000. ICO issued a monetary penalty notice (MPN) under section 55A of the Data Protection Act 1998 against Facebook Inc and Facebook Ireland Limited (together, “Facebook”).
Last year Facebook lodged a First Tier Tribunal (General Regulatory Chamber) (the “Tribunal”) against the fine. In June of this year, Facebook went further: The Tribunal issued an interim decision holding that procedural fairness and allegations of bias on the part of the ICO should be considered as part of the Appeal. Also, that the ICO should be required to disclose materials relating to its decision-making process regarding the MPN. The ICO appealed that interim decision on 2 September 2019.
Today, the ICO has announced an agreement has been reached with Facebook regarding the MPN.
As part of this agreement, Facebook and the ICO have agreed to withdraw their respective appeals. Facebook has agreed to pay the £500,000 fine. However, Facebook has made no admission of liability in relation to the MPN.
The fine is not kept by ICO but is paid to HM Treasury’s consolidated fund. As is usually the case in such proceedings before the Tribunal, the ICO and Facebook will each pay their own legal costs of the proceedings.
Further, the agreement enables Facebook to retain documents disclosed by the ICO during the appeal for other purposes, including furthering its own investigation into issues around Cambridge Analytica. Parts of this investigation had previously been put on hold at the ICO’s direction and can now resume.
Commenting on the agreement, James Dipple-Johnstone (Deputy Commissioner) said: “The ICO welcomes the agreement reached with Facebook for the withdrawal of their appeal against our Monetary Penalty Notice and agree to pay the fine. The ICO’s main concern was that UK citizen data was exposed to a serious risk of harm. Protection of personal information and personal privacy is of fundamental importance, not only for the rights of individuals but also as we now know, for the preservation of a strong democracy.
Dipple-Johnstone continued: “We are pleased to hear that Facebook has taken, and will continue to take, significant steps to comply with the fundamental principles of data protection. With this strong commitment to protecting people’s personal information and privacy, we expect that Facebook will be able to move forward and learn from the events of this case.”
Harry Kinmonth, Director and Associate General Counsel, Facebook also stated: “We are pleased to have reached a settlement with the ICO. As we have said before, we wish we had done more to investigate claims about Cambridge Analytica in 2015. We made major changes to our platform back then, significantly restricting the information which app developers could access.
“Protecting people’s information and privacy is a top priority for Facebook, and we are continuing to build new controls to help people protect and manage their information,” Kinmonth concluded. “The ICO has stated that it has not discovered evidence that the data of Facebook users in the EU was transferred to Cambridge Analytica by Dr Kogan. However, we look forward to continuing to cooperate with the ICO’s wider and ongoing investigation into the use of data analytics for political purposes.”