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Meta Loses Privacy Battle in Landmark Health Data Lawsuit

A California jury has dealt a significant setback to Meta in a high-profile privacy lawsuit alleging the collection and misuse of sensitive health data from the period-tracking app Flo. The verdict, rendered in the U.S. District Court for the Northern District of California, found that Meta breached the California Invasion of Privacy Act by failing to protect users’ confidential reproductive health information.

Big Tech Under the Microscope

The lawsuit, initiated in 2021 as a class-action case, brought together several major technology firms. Alongside Meta, companies such as Alphabet (Google’s parent company) and various data analytics firms were implicated. Flo Health, which had reassured its users that their sensitive data would remain private, saw its assurances undermined when its data was transmitted via software-development kits to these tech giants.

Legal Strategies and Corporate Response

While Google and one analytics firm chose to settle the claims before trial, Flo Health reached an agreement just before the conclusion of proceedings. Meta, however, elected to fight the allegations in court. Despite its robust defense, the jury verdict stands, a decision the company now plans to challenge on appeal. A Meta spokesperson dismissed the claims, asserting, “The plaintiffs’ claims against Meta are simply false,” and reaffirming the company’s commitment to user privacy by prohibiting the transmission of health or other sensitive information by developers.

Setting a Precedent for Digital Data Protection

The outcome of this case highlights the increasing pressure on major technology firms to handle user data responsibly. Lead trial lawyers Michael Canty and Carol Villegas remarked that the verdict sends a strong message regarding digital health data protection and the accountability of large tech companies. This decision not only underscores the potential legal risks associated with the covert monetization of personal data but also signals a broader shift towards more stringent digital privacy standards within the technology sector.

As Meta prepares to appeal the decision, industry observers note that this ruling could herald a new era of legal scrutiny over data handling practices across the tech landscape.

EU E-Commerce VAT Systems Generate €257.9 Million Revenue for Cyprus in 2024

Robust Revenue Growth Through Streamlined VAT Collection

Cyprus has demonstrated a significant fiscal boost in 2024 with €257.9 million generated from the European Union’s e-commerce VAT systems, according to Tax Commissioner Sotiris Markides. This impressive performance underscores the effectiveness of the One Stop Shop (OSS) and Import One Stop Shop (IOSS) frameworks in simplifying cross-border tax compliance.

Simplified Procedures for EU and Non-EU Businesses

The OSS system allows Cyprus-registered businesses to streamline VAT declaration and payment on sales to consumers in other EU countries. Companies simply register on the local OSS platform, apply the consumer’s VAT rate, aggregate their submissions quarterly or monthly, and remit a single consolidated payment. Subsequently, Cyprus allocates the appropriate share to each respective EU country. This efficient process extends to non-EU sellers as well, who can have their intra-EU distance sales managed under the Union Scheme.

Breakdown of VAT Revenue Streams

Last year’s declarations under the various schemes illustrate the system’s broad reach: €217.9 million was collected via the Union Scheme, €36.9 million through the Non-Union Scheme, and €3.1 million via the Import Scheme. While the Union Scheme caters to both EU and non-EU sellers engaging in distance sales, the Non-Union Scheme specifically accommodates non-EU firms delivering services to EU consumers. Furthermore, the Import Scheme targets goods valued at less than €150 that are imported from outside the EU.

Implications and Broader Impact

Implemented in July 2021 as an evolution from the more limited MOSS system, these reforms have not only consolidated tax collection through an expansive OSS but also integrated the IOSS for low-value imports. By designating certain online marketplaces as “deemed suppliers,” the new framework ensures that VAT collection is both efficient and equitable. Across the EU, these mechanisms have generated over €33 billion in VAT revenues in 2024, reflecting a successful effort to simplify tax compliance, reduce administrative burdens, and promote fair taxation across the bloc.

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