Zoom to Settle US Privacy Lawsuit for $85 mn

A Zoom App logo displayed on a smartphone. (File photo: AFP)
A Zoom App logo displayed on a smartphone. (File photo: AFP)
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Zoom to Settle US Privacy Lawsuit for $85 mn

A Zoom App logo displayed on a smartphone. (File photo: AFP)
A Zoom App logo displayed on a smartphone. (File photo: AFP)

Zoom, the videoconferencing firm, has agreed to settle a class-action US privacy lawsuit for $85 million, it said Sunday.

The suit charged that Zoom's sharing of users' personal data with Facebook, Google and LinkedIn was a breach of privacy for millions.

While Zoom denied wrongdoing, it did agree to improve its security practices.

The settlement needs to be approved by US District Judge Lucy Koh in San Jose, California.

A Zoom spokesman told AFP: "The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us.

"We are proud of the advancements we have made to our platform, and look forward to continuing to innovate with privacy and security at the forefront."

The settlement will set up a "non-reversionary cash fund of $85 million to pay valid claims, notice and administration costs, Service Payments to Class Representatives, and any attorneys' fees and costs awarded by the Court," according to the preliminary settlement.

All class members are eligible for payment, it said.

Those who paid for an account can receive 15 percent of the money they paid to Zoom for their core subscription during that time or $25, whichever is greater; while those who did not pay for a subscription can make a claim for $15.

As the coronavirus pandemic closed offices due to health risks and companies shifted to working online, use of video and collaboration platforms hosted by companies including Zoom, Slack, Microsoft, and Google rocketed.

But Zoom's rapid growth came with pressure to deal with security and privacy as the platform faced scrutiny from rising usage.



Huawei Eyes Greater Role in Brazil Data Center Market

Huawei logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. (Reuters)
Huawei logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. (Reuters)
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Huawei Eyes Greater Role in Brazil Data Center Market

Huawei logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. (Reuters)
Huawei logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. (Reuters)

Chinese tech giant Huawei is interested in strengthening and improving its capacity as a supplier of data center solutions, it said in a statement to Reuters on Thursday, clarifying that it did not intend to invest directly in data centers.

Reuters had reported on Wednesday that Huawei was interested in Brazil's data center market but was waiting on the government to roll out a tax-break plan.

"We want the government to implement these incentives, which are good for the country, and the time has to be now," Atilio Rulli, Huawei vice president of public relations for Latin America and the Caribbean, told Reuters.

The government's plan to dole out tax breaks for tech investments in Brazil is set to be sent to Congress soon, a finance ministry adviser said last month.

Latin America's largest economy is looking to establish a foothold in the fast-growing data center industry, pulling from its ample renewable energy.

The country is already courting major investments from firms such as ByteDance, TikTok's Chinese parent company, Reuters has reported.

Huawei could provide connectivity, storage and energy for data centers, Rulli said, speaking on the sidelines of an event hosted by state development bank BNDES.

"Huawei continues to follow the incentive policy being conducted by the Ministry of Development, Industry, Trade and Services, and when in force, will continue to contribute reliable, scalable and sustainable solutions to accelerate the digital transformation in Brazil and Latin America," Huawei said in the statement on Thursday.