Clearview AI, the controversial facial recognition startup, has been slapped with a €30.5 million ($33.7 million) fine by the Netherlands' Data Protection Authority (DPA) for operating an "illegal" facial recognition database, the agency announced on Tuesday. This significant penalty marks a major setback for the New York-based company, which has faced growing scrutiny over its data practices.
The DPA's decision stems from Clearview AI's creation and use of a vast database comprising billions of facial images scraped from the internet without proper consent. The DPA's Chairman, Aleid Wolfsen, emphasized the invasive nature of facial recognition technology, stating, "Facial recognition is a highly intrusive technology, that you cannot simply unleash on anyone in the world." He added, "If there is a photo of you on the Internet-doesn't that apply to all of us?-then you can end up in the database of Clearview and be tracked."
The DPA's fine reflects serious breaches of the European Union's General Data Protection Regulation (GDPR), which is designed to protect personal data and privacy. According to the agency, Clearview AI's practices amounted to significant violations of these regulations, with the company failing to adequately inform individuals whose images were included in its database.
In addition to the €30.5 million fine, the DPA warned of potential noncompliance penalties up to €5.1 million ($5.6 million) if Clearview fails to address the regulatory breaches. The agency's action also includes a directive that Dutch companies must cease using Clearview's services, underscoring the broad impact of the decision on the company's operations in Europe.
Clearview AI has responded strongly to the fine. Jack Mulcaire, Clearview's Chief Legal Officer, condemned the ruling as "unlawful, devoid of due process, and unenforceable." Mulcaire argued that Clearview does not fall under the purview of EU data protection regulations, noting that the company does not have a business presence or customers in the Netherlands or the broader EU.
The fine comes amid ongoing legal challenges for Clearview. In June, the company reached a settlement in Illinois over a lawsuit alleging that its extensive collection of facial images violated privacy rights. While Clearview did not admit liability in the settlement, the deal, estimated to be worth over $50 million, consolidates multiple lawsuits filed across the U.S.
Clearview AI's database, which aggregated photos from social media and other online sources, was marketed to businesses, individuals, and government agencies, raising concerns about privacy and data protection. The company's controversial practices have drawn criticism globally, with regulators and privacy advocates scrutinizing its methods and the ethical implications of its technology.
The Dutch fine is part of a broader regulatory crackdown on data privacy and the use of facial recognition technology. Last week, Uber was fined by the DPA for transferring European taxi drivers' personal data to the U.S., marking another instance of the EU's stringent enforcement of data protection rules.
