Big Tech Compliance Tracker: Facebook Faces $6.06 Million Fine From South Korea; Big Tech Tax Becomes Due In France

Here’s the latest news from the technology industry, which is coming under increasing global scrutiny from legislators and government agencies throughout the world.

Facebook Fined $6.06 Million By South Korean Agency

South Korea’s Personal Information Protection Commission issued a 6.7 billion won ($6.06 million) financial penalty to Facebook and has pursued a criminal probe for allegedly sharing the personal data of users with other operators in the absence of permission, Reuters reported.

“We have [been] cooperating as much as possible throughout the investigation process, we regret that the Personal Information Protection Commission has sought a criminal investigation,” a Facebook representative based in South Korea said in a statement, per Reuters.

The agency penalized the firm after an investigation determined that the personal data of a minimum of 3.3 million of the 18 million users of the social media company in Korea was given to operators beyond Facebook without them knowing between May 2012 and June 2018.

The commission said it would refer the recipient of the penalty, Facebook Ireland Ltd., to the nation’s prosecution for a criminal probe.

Big Tech Digital Service Levy Becomes Due in France

The French Finance Ministry has told Big Tech firms that the Digital Service Tax is now due, PYMNTS reported, citing Reuters.

“Companies subject to the tax have received notice to pay the 2020 installment,” an official from the Finance Ministry said.

The 3 percent tax impacts tech firms that have revenues exceeding 25 million euros (approximately $30 million) in France and 750 million euros (approximately $896 million) globally.

It was ratified in 2019, although collection was halted amid Organization for Economic Cooperation and Development (OECD) negotiations.

The ministry had decided that the tax would be collected beginning in December if discussions dragged on.

Chicago Alderman Proposes Tax on Deliveries

Deliveries by firms like Amazon would be taxed under a plan put forward by an alderman, the Chicago Tribune reported.

Patrick Daley Thompson aims to levy a $1.25 tax on packages sent by ground to addresses in Chicago that weigh a maximum of 50 pounds and $2.50 for bulkier parcels. Inhabitants who order the parcels would pay the taxes.

Food deliveries from eateries and prescription pharmaceuticals would not face the additional tax with Thompson’s roadmap.

Amazon India Fined Over ‘Country of Origin’ Labeling

India’s consumer affairs department has fined Amazon India for purportedly not following standards that entail showing country of origin details on packaged items sold on its site, CNBC-TV 18 reported, citing high-level government sources.

Amazon India was asked to pay a Rs 25,000 (about $340) financial penalty.

The Legal Metrology (Packaged Commodity) regulations that took effect beginning in January 2018 for online shopping platforms require that country of origin is shown on packaged items.

Last month, the consumer affairs ministry provided notices to Flipkart and Amazon on complaints of not showing the “country of origin” of products on their sites.

While Amazon couldn’t provide proof of country of origin shown on multiple items, CNBC-TV 18 reported, citing official sources, Flipkart replied with proof and was not penalized as a result.

Report: Apple Is Moving Some Manufacturing From China to Vietnam

As Apple diversified manufacturing to keep the effect of a Sino-U.S. trade war to a minimum, Foxconn is migrating select MacBook and iPad assembly from China to Vietnam at Apple’s behest, Reuters reported, citing an unnamed source.

Foxconn is creating assembly lines for the MacBook laptop and iPad tablet at its Bac Giang province facility to go live in the first half of next year, Reuters reported, citing the unnamed source.

“As a matter of company policy, and for reasons of commercial sensitivity, we do not comment on any aspect of our work for any customer or their products,” Foxconn noted in a statement, per Reuters, which said that Apple did not immediately reply to a comment request.

President Donald Trump’s outgoing administration has been pushing American companies to move manufacturing from China to other places.

Manufacturers in Taiwan have migrated, or are thinking about transitioning, some production from China to nations like India, Mexico and Vietnam.

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