The Guardian newspaper reports that Facebook's offices in Ireland are being audited in a process that could lead to the social media giant facing a $138,000 fine.
The fine would be related to the holding of 'deleted' user data.
The process began when a 24 year old Austrian made an official data request for information Facebook held on him. Facebook obliged and sent him the data – only for it to be revealed much of the information had been deleted by the user, yet Facebook had retained it on their databases.
The Irish Data Protection Commissioner has since called for the audit which is due to take place before Christmas 2011.
We'll keep you up to date with any further news on this story because is had undoubtedly high levels of interest and is another example of Facebook privacy concerns still being at the fore.