Amazon Receives Record Fine by European Regulator


July 30, 2021, | AtoZ Markets-Amazon, the company of the well-known billionaire Jeff Bezos has been sanctioned with a historic fine amounting to 746 million euros.

The sanction was imposed by The National Data Protection Commission of Luxembourg (CNPD), and the reason given by the entity for the fine was the violation of the data protection laws.

Meanwhile, this information was made known through Amazon's latest financial results. The company has said that this fine is from July 16, 2021, and has been released today.

For its part, Amazon explained that the fine is due to non-compliance with the GDPR (Data Protection Regulation of the European Union), and has mentioned that from its point of view, this fine "is unfounded" and that it intends to "defend itself vigorously".

Likewise, Amazon, which has its European headquarters in Luxembourg, denied that there had been any kind of breach that would violate the GDPR rules.

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>Read here Amazon financial results

Why Is It Considered a Record Sanction?

In January of this year, it was reported that the total fines for non-compliance with the GDPR amounted to €272.5 million, with €158.5 million relating to 2020. However, with this new fine from Amazon, this figure will skyrocket considerably.

Of the companies fined for breaching the regulation previously appear Google, with a fine amounting to €50 million, and in Spain, Caixabank and BBVA have been fined €6 million and €5 million respectively.

For its part, the Wall Street Journal notes that the decision was related to Amazon's data collection practices, but does not include Amazon Web Services.

Amazon Announces Second Quarter Results

According to yesterday's announcement, the technology company's operating cash flow increased 16% to $59.3 billion in the last twelve months, up from $51.2 billion in the last twelve months ended June 30, 2020.

Also, net sales increased 27% to $113.1 billion in the second quarter, compared with $88.9 billion in the second quarter of 2020.

Meanwhile, the company said it will be expected at the third quarter 2021 guidance the Net sales will be between $106.0 billion and $112.0 billion, or to grow between 10% and 16% compared with third-quarter 2020.

This guidance anticipates a favorable impact of approximately 70 basis points from foreign exchange rates.

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