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Are you watching me? Clearview AI gets caught with its pants down in the Netherlands and cops a hefty fine!
Clearview AI Faces Major Fine in the Netherlands
U.S. facial recognition company Clearview AI has been fined 30.5 million euros (AU$49.6 million) by the Dutch data protection watchdog, DPA, for creating what the agency described as an illegal facial recognition database, reports Reuters. The DPA also imposed a potential additional fine of up to 5 million euros for non-compliance. Despite Clearview AI’s lack of business presence in the Netherlands or the European Union, the DPA’s decision highlights the stringent regulatory environment in Europe regarding data privacy.
Clearview AI’s Response to the Fine
Clearview AI’s chief legal officer, Jack Mulcaire, argued that the company is not subject to the EU’s General Data Protection Regulation (GDPR) since it has no operations or customers within the EU. Mulcaire described the DPA’s ruling as “unlawful” and “unenforceable,” asserting that the company did not receive due process. Despite these claims, Clearview AI did not formally object to the DPA’s decision, leaving them without the option to appeal the fine.
Dutch DPA’s Stance on Facial Recognition
The Dutch DPA emphasised the invasive nature of facial recognition technology, stressing that it cannot be used indiscriminately. DPA Chairman Aleid Wolfsen warned that using Clearview AI’s services is illegal under Dutch law, reinforcing the country’s strict stance on protecting personal data. The ruling against Clearview AI follows a similar action by the DPA against Uber for data privacy violations, signalling a broader crackdown on companies that fail to comply with EU regulations.
Urgency for Pacific Legislators
In light of these new developments, a recent report highlighted that most Pacific countries are lagging behind when it comes to a coherent policy plan and legislative development peculiar to AI. The Pacific has already shown vulnerability in key areas such as identity protection, AI safety, responsible AI usage in business, public sector and amongst consumers. It is imperative, therefore, that Pacific Island legislators move quickly and decisively before becoming more vulnerable in the long run.
(Visit Reuters for the full story)
*An AI tool was used to add an extra layer to the editing process for this story.
