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Almost 1.9 billion users are outside of the U.S. and Canada, meaning they fall under the company's Ireland headquarters' terms of service, which will soon be protected by the European Union's General Data Protection Regulation (GDPR), which becomes enforceable from May 25.
However, changes to their terms and conditions will mean that more than 1.5 billion Facebook users across the globe, from the United States to Asia and Africa, won't fall under the protections of GDPR, which eliminates the burden of financial responsibility should Facebook improperly handle the data of the vast majority of its users. This changes the status of 1.5 billion Facebook users who will now be covered by USA laws rather than Irish law.
The comments were made in response to Privacy Commissioner John Edwards saying the social media giant breached the Privacy Act by refusing a complainant access to personal information held on the accounts of several Facebook users. Facebook is known to have 239 million users in the United States and Canada, 370 million in Europe, and 1.52 billion users elsewhere in the world.
Facebook is set to comply with strict new privacy rules in Europe next month, and CEO Mark Zuckerberg has said publicly that those protections will be available around the world. Had the social network left the majority of its users in Ireland, they could have enjoyed that level of protection as well, Reuters reports, but Facebook didn't want that. The privacy protection laws are simply much lower and less restrictive than they are in many other countries.
"This is a major and unprecedented change in the data privacy landscape", he said. They will then be governed by U.S. law rather than Irish law.
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Facebook insists it will be offering the "same privacy protections, controls and settings" to all users "no matter where they live".
"We apply the same privacy protections everywhere, regardless of whether your agreement is with Facebook Inc or Facebook Ireland", the company said.
Facebook will have more leeway in how it handles data about those users, Veale said. For example, the company said, the new European Union law requires specific legal terminology about the legal basis for processing data which does not exist in US law. Companies will also only be able to collect data for specific business purposes.
GDPR is likely to hurt profit at Facebook because it could reduce the value of ads if the company cannot use personal information as freely and the added expense of hiring lawyers to ensure compliance with the new law.
Users in the USA and Canada have never been subject to European rules. This outgoing legislation will be replaced by the more updated GDPR, which intends to unify the rules for companies in the European Union and to compel companies to notify users.
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