On Friday, The European Unions top privacy body fined Meta formerly known as Facebook a whopping 91 million euros (about $101.5 million). This fine was imposed for some user passwords accidentally stored without appropriate encryption or security mechanisms.

Five years ago this situation began when Meta told Irelands Data Protection Commission (DPC) of some passwords kept in an unencrypted manner. Meta officially reported the hack at that time, however the DPC verified that no outside users had found these passwords. 

Underlining that unencrypted user password storage is typically regarded as risky due the probable hazards of usage should unauthorized parties get access to the data, Graham Doyle Deputy Commissioner of the Irish DPC pointed out.Given the dangers of abuse linked with illegal access to such data, it is generally agreed that user passwords should not be kept in plaintext. 

Major American internet companies like Meta are mostly regulated by the Irish Data Protection Commission since their European headquarters is in Ireland. This means that the DPC is assigned to enforce on these businesses the European Unions General Data Protection Regulation (GDPR). Since the GDPR came into effect in 2018 Meta has faced multiple fines for different violations. The DPC has fined Meta 2.5 billion euros overall for GDPR rule breaking. 

Among these fines, Meta is currently contesting a record setting 1.2 billion euros in 2023 in court. The GDPR lays guidelines for how companies handle user data and aims to safeguard personal privacy within the EU, One of the main components of this control is the need to safely save data, including passwords using encryption or other security mechanisms to stop illegal access or theft of private information. 

Password storage difficulties for Metas draw attention to the difficulties even large technology firms have in following rigorous data security rules, Although the corporation disclosed the hack it suffered, it nonetheless paid a significant punishment highlighting the need of protecting information in the modern digital age. 

The DPC's decision to punish Meta is in line with Europes authorities more general attempt to hold big digital companies responsible for user data treatment. With the GDPR giving authorities to punish companies that deviate from its policies, it is hoped that greater data security methods would be encouraged throughout the industry. Meta has faced challenges recently, especially inside the EU as legislators and watchdogs strive to increase control of big digital companies. The fines issued under the GDPR act as a reminder of the growing scrutiny these businesses encounter as well as the financial repercussions related to failing data security criteria. 

Meta keeps running across Europe in spite of fines levied by the Irish Data Protection Commission; she is presently appealing against multiple charges, Although the results of these appeals are unknown, the continuous legal disputes draw attention to the challenges of negotiating privacy rules across several states. Short Metas 91 million euro fine for wrongly keeping customer passwords in plaintext adds to the pile of GDPR related fines the firm has suffered. Acting as the EU privacy regulator, the Irish DPC is quite important in maintaining data protection rules for American companies doing business in Europe. In a world going more and more digital, these fines remind companies of the need of safeguarding user data and following rules, so preserving personal privacy.