قالب وردپرس درنا توس
Home / Business / FTC approves $ 5 billion Facebook comparison

FTC approves $ 5 billion Facebook comparison



The Federal Trade Commission agreed this week to reach an agreement of around $ 5 billion

Facebook
Inc.

According to figures familiar with the matter, the FTC Commissioners' 3-2 vote was nonpartisan, and the Republican majority stood up to support the pact, while the Democrat commissioners objected, people said. The matter had been transferred to the Civil Division of the Ministry of Justice, and it was unclear how long it would take until it was completed. Justice Department reviews are part of the FTC process, but do not usually change the outcome of an FTC decision.

It is expected that an agreement will include other regulatory restrictions on the privacy of Facebook users. The additional conditions of the comparison could not be learned immediately.

An FTC spokeswoman declined to comment, as did a Facebook spokesperson.

Share Your Thoughts

Does the FTC have the right to approve a $ 5 billion agreement with Facebook? Why or why not? Join the following conversation .

On April 24, Facebook announced that up to $ 5 billion was earmarked for the investigation. A resolution was stalled by a split between Republicans and Democrats in the FTC, with Democrats pushing for stronger control of the social media giants.

The FTC investigation began more than a year ago after it was reported that personal data from tens of millions of Facebook users were mistakenly brought into the hands of Cambridge Analytica, a data company involved in the 201

6 campaign by President Trump has worked. The FTC investigation focused on whether this 2012 infringement of the 2012 Approval Decree violated the agency where Facebook agreed to better protect users' privacy.

Since the affair with Cambridge Analytica, more privacy issues have surfaced that have contributed to Facebook's headaches.

The comparison would exceed the previous record fine for violations of an FTC ordinance, a $ 22.5-million fine against Google Inc. in 2012, slightly exceeding offenders.

Facebook shares gained just over 1% on the news, even though the amount was $ 2 billion more than the company had reserved for the settlement.

The party's decision could expose Republicans to Democrats' criticism and reduce their impact on the FTC, which has historically been criticized as being "toothless" in terms of privacy. After Facebook set aside billions of dollars to pay the fine, some Democrats criticized the amount as insufficient.

Facebook and other big tech companies are increasingly in the limelight in Washington, DC, including at a White House-held "social media summit" in which President Trump repeatedly beat Silicon Valley over unfair conservative stance. Facebook was not invited and other technology companies were not invited and they said they would monitor their platforms regardless of political ideology.

Facebook is also gearing up for a possible review of its competitive practices. The Wall Street Journal reported last month that the Department of Justice is preparing for a cartel investigation

alphabet
Inc.

Is Google and has the authority to take care of it

Apple
Inc.

The FTC has the responsibility for possible antitrust checks by Facebook and

Amazon.com
.

Facebook is also preparing for congressional hearings next week on its proposed cryptocurrency Libra, which causes skepticism among President Trump and many regulators.

The agreement on data protection is due to the FTC's growing political pressure to pursue a harder line against Facebook and possibly other tech companies than the European enforcers were considered the world's top tech-top cop ,

With the dollar amount approved this week, the FTC received a fine that was higher than what the European Union could have claimed under its Privacy Act.

Facebook's first FTC settlement, completed in 2012, sparked commission allegations that the company had repeatedly breached its privacy policy to users of the site, including by sharing its data with advertisers and other third parties.

For example, Facebook-based apps such as a TV show quiz could determine the relationship status or photos of a user, the FTC said at the time – even if Facebook said that unnecessary personal details would not be shared with apps. Facebook has partially resolved the case by promising not to deceive users any further.

According to Facebook, a personal prediction app in 2017 collected data from tens of millions of users and shared it with a political consultancy, Cambridge Analytica. The FTC reopened the case, this time with its considerable power to punish repeat offenders.

The big-ticket fine is unlikely to satisfy Facebook's most stubborn critics, as the billion dollar fines imposed on major banks after the 2008 financial crisis did little to alleviate the rage on Wall Street.

The legislators of both parties are working on new data protection regulations for large technology companies, while many Democratic presidential candidates want to examine the market power of Facebook. Senator Elizabeth Warren (D., Mass.) Is calling for the company to be dissolved, a position recently supported by Facebook co-founder Chris Hughes.

Write to Emily Glazer at emily.glazer@wsj.com and Ryan Tracy at ryan.tracy@wsj.com.

Copyright © 2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8


Source link