Facebook Faces 2 Irish Probes Over Handing Of Children's Data On Instagram

Facebook Inc (NASDAQ: FB) is facing two investigations in Ireland over its handling of children's personal data, Reuters reported Sunday. 

What Happened: Graham Doyle, Deputy Commissioner of the Data Protection Commission (DPC) — the main privacy regulator in the European Union — told Reuters that “potential concerns” were identified in how the Mark Zuckerberg-led company processes children’s personal data on Instagram.

Both investigations were launched last month, according to Doyle. The first inquiry reportedly looks into the legal basis for Facebook to process such data and whether the social media giant employs adequate protections and restrictions to ensure the security and privacy of the data.

The profile and account settings of Instagram would be the focus of the second inquiry. The DPC will probe whether these adhere to the European Union regulations, as per Reuters.

The probe was initiated following a complaint by David Stier, a U.S. data scientist, the Telegraph reported. Instagram purportedly made the email addresses and phone numbers of users under 18 public, as per the British daily.

Why It Matters: The DPC is the lead regulator of privacy under the E.U.'s General Data Protection Regulation’s “One Stop Shop” regime, as Ireland is the home base of a number of large U.S. tech giants, noted Reuters.

Fines for privacy violations could reportedly be up to 4% of the company’s global revenue or $22 million, whichever is higher.

Last month, Facebook said it was unsure if it could continue its operations in the EU after the DPC ruled that its main data transfer mechanism for cross-Atlantic traffic could not be used any longer.

In February, New Mexico sued Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) for violating children’s data privacy.

Alphabet’s YouTube also faces a $3.2 billion lawsuit in the United Kingdom over violating the privacy of children under 13 years of age, BBC reported.

Price Action: Facebook shares closed 0.3% lower at $265.93 on Friday and fell 0.35% in the after-hours session.