As per the latest reports, Amazon has ended up facing a huge fine imposed by one of the major regulatory authorities from the European Union. The sources have revealed that it is the record-breaking fine that has been imposed on Amazon in its entire operational history.
The reports have started coming in that a major regulator from the European Union has imposed a huge fine on Amazon. The regulatory authority from the European Union has alleged Amazon of violating the signature privacy law of the bloc.
According to sources, the name of the particular privacy law is GDPR. It has been confirmed that the decision was related to advertising from Amazon. As a result, Amazon has been reported imposed with a fine of €746 million, which at the time of writing, translates to $887 million.
The inside sources have confirmed that the fine was imposed on Amazon in the middle of July. However, it was on Friday, July 30, when it was disclosed to the public. This fine was revealed through a financial filing that was submitted by the eCommerce giant.
It has been reported that in the three-year history of the law, it is the largest fine. Prior to this, the only highest fine was paid by Google, which was reported €50 million, a very small amount compared to Amazon. Furthermore, the fine was imposed on Google back in 2019.
In a statement, the regulators alleged Amazon that was not following the correct procedure and process that was instructed under the GDPR requirements. By not following the guidelines provided under the GDPR requirements, Amazon ended up breaching the law and was liable for legal action.
Following the financial reporting, Amazon has confirmed that it has been imposed with a hefty fine. The eCommerce giant has also confirmed that it has received clear instructions from the regulatory authorities to change its processes for running the business.
However, Amazon has made another statement, which seems to be clashing with the interest of the regulatory authorities in the EU. Amazon has claimed that the allegations imposed by the EU regulators are without any merit.
The Amazon stakeholders and investors are afraid that the recent statement made by Amazon’s executives may spark a feud between the two entities. This may become a never-ending series of blaming each other and going after the regulatory flaws or the company’s operating flaws.
It seems that Jeff Bezos’s stepping down from Amazon was a bad call as the platform has come under a lot of pressure since his departure. Now is the time for Andy Jassy to prove himself as a true leader and show investors/stakeholders that he can continue from where Bezos left off.
Since the announcement of the fine, Amazon has taken a 7.56% negative hit on its stocks. In the last 24-hours, Amazon share prices have dropped by $272.33 and the current share price is $3,327.59
