CIOInsider India Magazine
Zoom Pays $ 85 Million to Settle Lawsuit Against User Privacy Rights
To settle a lawsuit alleging the violation of users’ privacy rights by sharing personal data with Facebook, Google, and LinkedIn, as well as allowing hackers to disrupt Zoom meetings in practice known as Zoombombing, Zoom pays $ 85 million which is about Rs.630 crores. At the same time, it has decided to strengthen its security practices.
Outsiders who hijack Zoom meetings and exhibit sensual content, inappropriate language, or upload other offensive content are known as Zoombombing.
Subscribers associated with the issue, are expected to receive a refund of 15 percent on their basic membership or $ 25 (approximately Rs. 1,860), whichever is greater, while others could receive up to $15 (roughly Rs. 1,120).
However, the latest settlement comes after the approval of San Jose, California district Judge Lucy Koh, who allowed plaintiffs to pursue some contract-based claims.
The Judge said that the platform was highly improbable to zoombombing under section 230 in the Communications Decency Act, which guards online platforms against liability over user content.
the platform is expected to take security measures such as notifying users about third-party apps used during meetings while providing specialized privacy and training to its workforce.
Like every other online platform, the teleconferencing platform’s consumer base grew sixfold over the pandemic and earlier this year, the company has had about 497,000 customers with more than ten employees, compared to 81,900 in January 2020.
It stated that when more individuals obtain immunizations and return to work or school in person, user growth may moderate or decline.
Currently, the platform is expected to take security measures such as notifying users about third-party apps used during meetings while providing specialized privacy and training to its workforce.
According to IBES Refinitiv data, the San Jose, California-based company mitigated some of those fears by expecting current-quarter revenue in the region of $985 million to $990 million, which is higher than Wall Street's expectation of $931.8 million.
The company's stock was up two percent after plunging as much as five percent in after-market trade due to rising costs.
Costs increased by 155 percent to $265 million in the first quarter ending April 30.
The rising number of free users on Zoom's platform has resulted in increased costs for the company, which owns and manages some of its own data centres.
