American technology giant Amazon has lost an appeal against a record 746 million euro (A$1.27 billion) fine imposed by Luxembourg's privacy regulator four years ago.
The Luxembourg National Commission for Data Protection (Commission Nationale Pour La Protection Des Données - CNPD) said the Luxembourg Administrative Tribunal had decided on 19 March 2025 to reject Amazon’s appeal and uphold the CNPD's original decision.
Amazon’s Luxembourg subsidiary Amazon Europe Core S.à r.l was penalised for infringements of the General Data Protection Regulation (GDPR), the European Union (EU) regulation protecting EU citizens' personal data and privacy.
“This means that the fine imposed for GDPR infringements will stand, and Amazon will need to comply with the corrective measures ordered by the CNPD,” the CNPD said in a statement.
"However, the effects of the CNPD's decision remain suspended during the appeal period and, if applicable, during any potential appeal procedure before the Administrative Court.”
Amazon said it was considering appealing the court ruling, and that the CNPD's decision "imposed an unprecedented fine based on subjective interpretations of the law about which they had not previously published any interpretive guidance", Reuters reported.
One of the major concerns regarding Amazon's GDPR compliance related to its Alexa voice assistant, including retaining voice recordings and other personal data.
The CNPD handed down its decision on 15 July 2021, Amazon launched an appeal on 29 October 2021 and the hearing before the Tribunal was held on 9 January 2024.
Although the Tribunal's decision is public, the national law on data protection prevents the CNPD from commenting on individual cases.
Amazon’s share price closed on Wednesday (Thursday AEDT) at US$195.54, up $2.72 (1.41%), capitalising the company at $2.06 trillion (A$3.27 trillion).
