EU Court Fines European Commission for Breaching GDPR in Landmark Ruling

In a groundbreaking judgment, the European Union’s General Court has ordered the European Commission to pay €400 in damages to a German citizen for violating the General Data Protection Regulation (GDPR).

The decision, reported by Reuters, marks the first time an EU institution has been held financially accountable under its own flagship data protection law.

The case sets a significant precedent, challenging the EU’s institutions to adhere to the same stringent standards they enforce on corporations and member states. It also raises critical questions about the consistency of GDPR enforcement and the EU’s own compliance mechanisms.

The Case: Data Transfer Breach

The lawsuit originated from an incident in which the claimant used the “Log in via Facebook” feature on an EU-authorised platform to register for a conference. During the process, the user’s IP address was transferred to Meta Platforms, Facebook’s parent company in the United States, without the appropriate safeguards required under GDPR.

Under GDPR rules, personal data transfers outside the EU are only permitted if sufficient protections are in place. The court found that the European Commission failed to ensure these protections, thereby breaching GDPR provisions. The €400 fine, while modest in monetary terms, carries significant symbolic weight, as it underscores the principle that EU institutions are not exempt from their own regulations.

A Landmark Decision

Since GDPR came into force in 2018, the regulation has been widely hailed as a global gold standard for data protection. It has empowered regulators to levy hefty fines on tech giants like Meta, LinkedIn, and Klarna for data breaches and non-compliance, often running into millions of euros.

However, this is the first instance in which an EU institution itself has been found in violation of GDPR.

In its ruling, the General Court highlighted the need for EU institutions to take proactive measures in ensuring compliance with GDPR. It also reinforced the responsibility of these bodies to act transparently and safeguard the personal data of individuals interacting with their platforms.

European Commission’s Response

A spokesperson for the European Commission said, “The Commission takes note of the court’s decision and will carefully examine it and its implications.” The statement stopped short of accepting fault but indicated that the institution would review its internal data protection practices.

This measured response reflects the wider challenge facing EU institutions in maintaining their credibility as global leaders in data protection. While the fine itself is nominal, the reputational damage could be far more significant, particularly as the EU seeks to assert itself as a champion of digital rights and privacy on the global stage.

The ruling raises broader questions about the EU’s internal accountability mechanisms. Over the years, GDPR enforcement has been directed almost exclusively at private corporations and member states, often with substantial financial penalties.

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