Netflix Shares Slide 3.22% Amid €4.75 Million GDPR Fine for Data Missteps
1min read On December 18, shares of Netflix (NFLX) fell by 3.22%, marking the second consecutive day of decline, with a cumulative drop of 3.42% over the two days.
The Dutch Data Protection Authority (DPA) announced on Wednesday that Netflix has been fined €4.75 million (approximately $4.98 million) for failing to adequately inform customers about the use of their personal data during the period between 2018 and 2020. The investigation, initiated in 2019, concluded that Netflix's privacy statement did not sufficiently clarify how the data was being processed, a breach of the General Data Protection Regulation (GDPR).
The DPA's statement highlighted that when customers inquired about the data collected on them, the information provided by Netflix was inadequate. This lack of transparency is considered a violation of GDPR standards. In response, Netflix has voiced its intention to oppose the fine. The streaming giant contends that it has since updated its privacy statement and improved the level of information given to users.
This recent fine underscores the increasing global emphasis on data privacy and protection, particularly in light of stringent regulations across Europe. It serves as a reminder for companies worldwide to ensure clear communication and compliance with privacy laws to avoid punitive actions.
