Amazon receives record US$887 million fine from European Union

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Here’s Andy Jassy’s first challenge. The e-commerce giant Amazon was fined 887 million dollars through the European Union for breaking the rules of GDPR, the General Data Protection Law (LGPD) of the block.

A fine of about 4.5 billion reais was revealed by the company this Friday, 30, through a financial record, but was only applied two weeks ago by the National Data Protection Commission of Luxembourg (CNPD), the country where the company’s headquarters are located.

The value is the highest in EU history for sanctions of the type since 2019, when the Google was fined 50 million euros. At the time, the value was approximately 210 million reais.

The fine represents around 4.2% of net income from Amazon in 2020, which was 21.3 billion dollars, and 0.2% of the company’s total revenue, valued at around 386 billion dollars.

The EU allows regulatory bodies to impose fines of up to 4% of a company’s annual turnover.

No Brazil, a LGPD provides warnings, blocks and daily fines that can reach 2% of net sales, with a ceiling of up to 50 million reais. The sanctions and fines even start to apply from Sunday, August 1st.