Facebook will be fined a record $5 billion over privacy mishaps

  • 14/07/2019
Facebook will be fined a record $5 billion over privacy mishaps

The US Federal Trade Commission this week approved an agreement with Facebook Inc amounting to about $ 5 billion in connection with a research into the processing of user data by a social networking company.

The FTC is examining Facebook's accusations of inadequate information sharing, owned by 87 million users, with the now departed British consulting political company Cambridge Analytica. The study concentrated on finding out if information sharing breached the 2011 approval agreement between Facebook and the regulator.

Investors welcomed the news of the agreement and raised Facebook shares by 1.8%, however, some influential Democratic legislators in Washington criticized the suggested punishment, calling it inadequate.

According to the Wall Street Journal, the FTC is anticipated to add other restraints how Facebook handles user confidentiality, which was conducted in accordance with the order of the parties, with three Republicans voting for it, and two Democrats opposed .

The resolution would be the biggest civil fine ever paid to the agency.

Facebook's income for the first quarter of this year was $ 15.1 billion, and net revenue was $ 2.43 billion. The reason for the income not being that high is Facebook’s allocation of $ 3 billion for the FTC fine.

While Facebook is addressing a huge regulatory challenge for Silicon Valley, the Silicon Valley firm still faces potential antimonopoly investigations, as the FTC and the Department of Justice are conducting a large-scale review of rivalry among major US technology firms.

We should also mention that Libra also faces public condemn from President Donald Trump and others about Libra’s planned cryptocurrency for worries about confidentiality and money laundering.

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