When Mark Zuckerberg turned on Facebook's news feed in 2006, his users – college students at the time – freaked out with the idea that Facebook would automatically share their posts with friends. Even digital natives were afraid to share a lot online. However, Zuckerberg waited a few days, explained the product, "breathing" to its users, and News Feed became one of the most influential ideas of the 21st century.
Zuckerberg came from the experience of having a faith that led the way to Facebook and since then no more problems: people want less online privacy than they think, and sometimes the only way to make them realize that they are be forced to share more.
And so he has operated Facebook for most of the next 1
Until now. When Facebook released quarterly results on Wednesday, it is expected that the US Trade Commission will be fined US $ 3 to $ 5 billion for violating the terms of an agreement with the agency in 2011 to end the US Privacy of users. Investors who fined heavily and found that Facebook's core business continues to grow robustly, responded with relief and skyrocketed the company's shares in after-hours trading by more than 7 percent.
Facebook and the FTC have been locked in negotiations for months, and there was news that the fine could be billions of dollars. But there was also news that Facebook could fight the fines. On Wednesday, Facebook has publicly recognized the possible extent of the fines for the first time. Facebook said it did not settle the case with the FTC. However, it posted $ 3 billion in quarterly revenue, suggesting that it intends to settle and seek to control the narrative. The $ 3 billion fee reduced first-quarter earnings by more than half; The fine reduces the company's cash reserves by 7 to 11 percent.
Symbolically, however, the fine is of great importance. Although Facebook has been pilloried for two years because of his role in the 2016 US presidential election, because of the data loss that triggered the Cambridge Analytica scandal, and a hack last fall that uncovered the data of 50 million users The company had never been officially punished in any meaningful way.
Facebook was hammered in court of public opinion. That forced her to invest billions to change the way she does business. And all that had put the stock price on a roller coaster ride. So far, however, the regulators had not measured.
Perhaps more ominous this will be the FTC with a big fines fine on a tech company, and it's raised in the midst of a very business-friendly republican government. The European Union has imposed a fine of more than $ 8 billion on Google three times over the past four years for various anti-trust and privacy violations. But the US Presidents Trump and Obama have been far less aggressive in regulating tech companies.
The FTC's biggest ever fine against a tech company was Google's $ 22.5 million browser in 2012. In the months immediately following the Cambridge Analytica scandal last year, Washington debated whether the agency would ever impose a fine.
But Some Years of Courageous Approaches to Privacy and User Data and Technology Companies The role of the dominant media and communications companies of the 21st century has increasingly outraged Americans – and now their government has noticed.
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