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GDPR impact Google, Facebook looking at USD 9.3 Billion fine

GDPR impact: Google, Facebook

Technology giants Google and Facebook have been hit with privacy complaints, after the European Union's General Data Protection Regulation (GDPR) took effect on 25th May. The complaint could carry fines up to USD 9.3 Billion in total.

United States: As soon as GDPR came into action, complaints of privacy violation have been filed against Google and Facebook. Facebook, along with its subsidiaries WhatsApp and Instagram, along with Google are looking at a USD 9.3 Billion fine in total over privacy complaints of breaking European Union's new privacy law., the Austria-based privacy-advocacy group claimed that the four companies have made a compulsory "take it or leave it" approach regarding privacy, demanding that they give in to intrusive terms of service. According to the statement issued by the group, a lot of consent boxes come up online or in applications, combined with a threat that the service cannot be used If the users do not consent.

Noyb has asked regulators in France, Belgium, Hamburg and Austria to fine Google, Facebook, Instagram and WhatsApp up to 4 per cent of their annual revenue as per the GDPR rules i.e. up to of USD 4.88 billion for Google's parent company Alphabet Inc and USD 1.63 Billion each for Facebook and its WhatsApp and Instagram services. The tech giants will have to pay the price if the regulators agree with Nyob.

Meanwhile, Google has assured that it is working to comply with guidelines. The leading search engine listed the key steps it has taken to comply with the new privacy law. A company spokesperson said that the company is committed to comply with the GDPR and has built privacy and security into all the products from the earliest stages.

Facebook's chief privacy officer also commented about the social media giant’s commitment on complying with the rules. According to him. Facebook has been taking steps over the last 18 months, to update their products, policies and processes to provide users with data transparency and control across all the services.

GDPR, came into effect from May 25 and provides European Union citizens control of how their personal information is collected, processed and used online. Infringement of GDPR laws can lead to penalties up to either 20 million euros or four percent of their annual turnover. Europeans were also blocked from various US news outlets because of this regulation.

News websites under the Tronc and Lee Enterprises media including New York Daily News, Chicago Tribune, LA Times, Orlando Sentinel and Baltimore Sun publishing houses were affected.

According to TechSci Research, with the implementation of GDPR act, data sensitive/Data leveraging companies are likely to be in a tight spot as cybersecurity companies would increase their vigilance and help consumers as well as enterprises in securing their data. The market for cybersecurity is anticipated to grow on back of need to enlighten consumers about their personnel data violation and protection status. The tradition marketing means would get a boost as the digital marketing platforms would require to be extra cautious to make sure the company is in accordance with the GDPR act. GDPR is anticipated to drive the growth of data protection market as customers will have more control over how their data is shared.

According to the recently published report by TechSci Research, “Global Data Protection Market, By Component (Solutions Vs Services), By Deployment Mode (Cloud Vs On-Premises), By End-User (Government and Defense, BFSI, Healthcare, IT & Telecom, Consumer Goods and Retail, Education, Media and Entertainment & Others), Competition Forecast & Opportunities, 2013 – 2023”, Global data protection market is projected to grow at a CAGR of over 16%, in value terms, during 2018-2023. High adoption rate of digital transformation, demand for effective & efficient information management, increased technological advancement, growing number of information-based organizations and increase in government expenditure on digital infrastructure development are some factors, that will propel the demand for data protection over the next five years. North America is anticipated to remain a strong contributor in the data protection market in the forecast period, owing to strong awareness and use of the product. APAC is expected to register faster CAGR than any other region, backed by rapid digital transformation and cloud adoption.

According to the recently published report by TechSci ResearchGlobal Cyber Security Market By Security Type (Network Security, Content Security, etc.), By Solutions (Identity & Access Management, Risk & Compliance Management, etc.), By End Use Industry, By Region, Competition Forecast and Opportunities, 2011-2021”, global market for cyber security is projected to surpass US$ 137 billion by 2021. Growing trend of Bring Your Own Device (BYOD), rising adoption of cloud computing, expanding market for Internet of Things (IoT) are expected to continue driving the cyber security market across the globe over the next five years. Though the global cyber security market is highly fragmented, Symantec Corporation emerged as the largest player in 2015, followed by BAE Systems PLC, Intel Corporation and Cisco Systems. Banking, Financial Services and Insurance (BFSI); IT & Telecom; defense; energy & power; retail; and healthcare have emerged as the key application areas where cyber security solutions are being increasingly adopted.

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