The Dutch data protection watchdog on Tuesday issued facial recognition startup Clearview AI with a fine of 30.5 million euros ($33.7 million) over its creation of what the agency called an “illegal database” of billion of photos of faces.
The Netherlands’ Data Protection Agency, or DPA, also warned Dutch companies that using Clearview’s services is also banned.
The data agency said that New York-based Clearview “has not objected to this decision and is therefore unable to appeal against the fine.”
But in a statement emailed to The Associated Press, Clearview’s chief legal officer, Jack Mulcaire, said that the decision is “unlawful, devoid of due process and is unenforceable.”
30 million? For a billion pictures of faces? Lol. Of course they hacen’t appealed, that fine is a pittance to them.
Alas it sounds like the company is even dumber than that. From their quote,
But in a statement emailed to The Associated Press, Clearview’s chief legal officer, Jack Mulcaire, said that the decision is “unlawful, devoid of due process and is unenforceable.”
I am guessing the reason they didn’t appeal is because they refuse to recognize the jurisdiction of the Dutch courts altogether.
However, this is wrong, and I’m pretty sure it will come back to bite them. Under the GDPR,
EU data protection authorities may fine companies that continue to do business with US organizations that violate GDPR
and also
EU and US companies may pursue US companies for breach of contract, if GDPR compliance is written into the underlying agreement. These contractual claims may be adjudicated in US courts, depending on the contract, even if they relate to EU compliance.
So in short US companies that do business in the EU and also do business with Clearview may get sued and have to pay up on Clearview’s behalf. Expect Clearview to run out customers shortly after the first set of suits get litigated successfully against Clearview’s customers…
(Edit: source from https://www.metaverselaw.com/how-will-gdpr-be-enforced-in-the-us/ )
Mulcaire said in his statement that Clearview doesn’t fall under EU data protection regulations.
“Clearview AI does not have a place of business in the Netherlands or the EU, it does not have any customers in the Netherlands or the EU, and does not undertake any activities that would otherwise mean it is subject to the GDPR,” he said.
It stole personal data of EU citizens, which is a crime in the EU and the US.
It’s unlikely they will pay, though.
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