Clearview AI Hit by €30.5 Million in the Netherlands for Violating the GDPR

• Facial recognition startup Clearview AI has been hit by a 30.5 million ($33.7 million) fine by the Netherlands' data protection authority, Autoriteit Persoonsgegevens, for violating the EU's GDPR.
• It's the result of a 2023 investigation that was started after 3 individuals complained about the company for denying their data access request.
• Clearview has dismissed the allegations and called the decision unlawful.

Clearview AI has been hit by a massive fine of 30.5 million ($33.7 million) by the Netherlands' data protection authority, Autoriteit Persoonsgegevens (AP), on Tuesday for violating the European Union's General Data Protection Regulation (GDPR).

In the press release, the AP said that if the company continued to break rules, it would be charged with an additional fine of 5.1 million, bringing the total fine to 35.6 million.

The AP also added that the company cannot appeal against this fine as it did not object to the decision.

Clearview is a US-based AI startup that built a searchable database containing billions of unconsented pictures of regular people's faces.

More About the Case

It all started with a 2023 investigation by the Dutch agency after three users filed a complaint against the company, accusing it of not complying with their data access requests.

For those who don't know, the GDPR gives citizens a right to request access to their personal data to see what kind of data the company has been storing. They can also request data deletion.

However, Clearview did not comply with these requests.

• The worst part is, that all this data was being stored without the users' consent, which is one of the major reasons for the fine.
• Clearview also built a database of personal information such as photos, unique biometric codes, and other information linked to the users without any legal basis. This is illegal in the EU.

Of course, there are some exceptions, but Clearview's services do not fall into those exceptions. The AP also sent out a warning for the people who intend to use the service.

Clearview breaks the law, and this makes using the services of Clearview illegal. Dutch organizations that use Clearview may therefore expect hefty fines from the Dutch DPA' - Aleid Wolfsen, Dutch DPA chairman

What Does Clearview Have to Say About This Decision?

Clearview's statement was rather surprising. It said that it neither has any facilities for any users from the EU or the Netherlands. This means it cannot be subjected to the GDPR.

Hence, this decision is unlawful and there's no way they can enforce it. It has not revealed how it plans to respond to this situation, given it cannot appeal against the fine.

This isn't the first time that the company has been hit by a fine for violating the GDPR.

Over the last few years, it has amassed a total fine of 100 million but hasn't paid any of those yet. It doesn't even have a legal representative appointed for the EU.

Even worse, it hasn't changed its ways. Despite so many warnings and fines, it continues to play against the rules. The authorities are still trying to work out a way to stop it from breaking the law.

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