Australia fines Facebook owner Meta $17.9m for undisclosed data collection
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Meta still faces a civil court action by Australia’s Office of the Information Commissioner over its dealings with Cambridge Analytica in Australia.
PHOTO: REUTERS
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SYDNEY - An Australian court ordered Facebook owner Meta Platforms to pay fines totalling A$20 million (S$17.9 million) for collecting user data through a smartphone application advertised as a way to protect privacy without disclosing its actions.
Australia’s Federal Court also ordered Meta, through its subsidiaries Facebook Israel and the now-discontinued app Onavo, to pay A$400,000 in legal costs to the Australian Competition and Consumer Commission (ACCC), which brought the civil lawsuit.
The fine wraps up one strand of Meta’s legal issues in Australia related to its handling of user data since a global scandal erupted over its use of data analytics firm Cambridge Analytica
Wednesday’s judgment was in relation to Onavo, a virtual private network (VPN) service that the firm – then called Facebook – offered from early 2016 to late 2017, and which it advertised as a way to keep personal information safe. VPNs obscure an Internet user’s identity by giving their computer a different online address.
But Facebook used Onavo to collect data on users’ location, time and frequency using other smartphone apps, and the websites they visited, for its own advertising purposes, Judge Wendy Abraham said in a written judgment.
“The failure to make sufficient disclosures... may have deprived tens of thousands of Australian consumers of the opportunity to make an informed choice about the collection and use of their data before downloading and/or using Onavo Protect,” she wrote.
She added that the court could have fined Meta hundreds of billions of dollars since Australians downloaded the app 271,220 times and each breach of consumer law carried a A$1.1 million fine, but “the contraventions can be characterised as a single course of conduct”.
The fine was agreed by both sides but “carries with it a sufficient sting to ensure that the penalty amount is not such as to be regarded... as simply an acceptable cost of doing business”, she wrote.
Meta, which made global revenues of US$116 billion (S$154.21 billion) in 2022, said in a statement that the judge had acknowledged it never sought to mislead customers, and “over the last several years we have built tools to give people more transparency and control over how their data is used”.
In a statement, ACCC chairman Gina Cass-Gottlieb said Australian consumers should be able to make informed choices on what happens to their data based on clear information. REUTERS
