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Home / Business / Facebook's FTC fine is $ 5 billion – or a month of revenue

Facebook's FTC fine is $ 5 billion – or a month of revenue



  A Facebook logo and

Getty Images | Ted Soqui

The Federal Trade Commission and Facebook have reportedly agreed to pay a $ 5 billion fine to settle the FTC's social networking data protection investigation.

After Facebook reported $ 1

5 billion in sales in the last quarter, it would have been $ 5 billion in revenue for a month.

The FTC voted 3: 2 this week to approve the settlement, with three Yes votes from Republican commissioners and two Democrats against, the Wall Street Journal reported today citing anonymous sources. Democrats in the commission pushed for "stricter control," the Journal wrote.

The FTC has not publicly announced the deal.

"The matter has been transferred to the Civil Division of the Ministry of Justice, and it is unclear how the completion will take a long time," the Journal wrote. "Justice Department reviews are part of the FTC process, but they generally do not change the outcome of an FTC decision." No details about the restrictions.

FTC officials reportedly discussed whether Facebook CEO Mark Zuckerberg should be personally held accountable for his company's breaches of privacy, but there was no information on Zuckerberg's punishment today.

The FTC The investigation began in March 2018 after it became known that up to 87 million user information had not been properly disclosed to Cambridge Analytica, a political consulting firm working on Donald Trump's presidential campaign. The investigation focused on the question of whether Facebook violated the terms of its 2011 agreement with the FTC, preventing Facebook from misrepresenting the privacy or security of user data, and requiring Facebook to obtain explicit consumer consent before Changes are made that override privacy settings.

Facebook warned investors in April to impose a fine of $ 3 to $ 5 billion and does not expect the fine to be tax deductible. The company reported net income of $ 2.4 billion for the first quarter, after accounting for at least $ 3 billion in legal fees expected. Facebook stock prices rose 1.8% today.

Democratic members of Congress have blown up the agreement. "This reported $ 5 billion fine is barely a slap on the wrist, not even a slap," said Senator Richard Blumenthal (D-Conn.) In a statement. "Such financial punishment for deliberate, obvious illegality is a moron for a company that makes tens of billions of dollars every year." Will Facebook be forced to change its current, systematic abuse of privacy? "Based on the agreement reached, the answer is saddened, no. "

Sen. Ron Wyden (D-Ore.) Voted. "Despite the Republicans' promise to hold the big technology accountable, the FTC seems to have failed miserably at its best," Wyden said. "No corporate punishment can replace the need to personally blame Mark Zuckerberg for the apparent and repeated violation of American privacy, which means that the reported penalty is a mosquito bite on a Facebook-sized company."


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