Published: Mon, July 15, 2019
Money | By Ethel Goodwin

Facebook's $6.8b fine not harsh enough, say critics

Facebook's $6.8b fine not harsh enough, say critics

Since the Cambridge Analytica debacle erupted more than a year ago and prompted the FTC investigation, Facebook has vowed to do a better job corralling its users' data. The firm used the data to build political profiles about individuals without the consent of Facebook users. Facebook's revenue for the quarter exceeded $15 billion. The fine is the largest that the FTC has ever imposed, by a long shot. Neither the FTC or Facebook had any comment to share at this time.

The settlement was passed after three Republican commissioners voted in favor of the matter while two Democratic members opposed the deal, sources speaking with WSJ alleged.

The expected multibillion dollar penalty comes as a result of an FTC investigation into Facebook's Cambridge Analytica affair, in which the personal data for tens of millions of Facebook users was improperly accessed by the data firm.

USA regulators have authorised a file $5bn (£4bn) ravishing on Facebook to settle an investigation into recordsdata privacy violations, experiences in U.S. media dispute.

Based on these revelations, the FTC previous year announced that it reopened its investigation into a 2011 privacy settlement with Facebook.

A $5 billion fine is not considered a steep penalty for Facebook, as the social media giant made a profit on $22 billion a year ago on $56 billion in revenue.

During the first quarter, Facebook raked in more than $15 billion in revenue, while the company's total worth now falls somewhere in the range of $580 billion.

He and others questioned whether the FTC will force Facebook to make any meaningful changes to how it handles user data. But in the context of Facebook, given its size, reach and worth, $5 billion is little more than a slap on the wrist.

Separately, the FTC was recently granted purview for examining antitrust issues at Facebook, while some lawmakers argue that the company had become a monopoly that should be broken up. In a majority 3-to-2 vote, the FTC approved the settlement.

Some have called on the regulators to hold Facebook CEO Mark Zuckerberg personally liable for the privacy violations in some way, but this is not likely. However, since the Democrats had been outnumbered in the panel, Facebook managed to get away with a fine, albeit a pretty hefty one.

Facebook has already been within the public eye more than just one time with respect to using or selling data from its customers to organizations. There are almost a dozen separate probes being undertaken by Ireland's Data Protection Commissioner, whose office oversees European Union privacy regulation.

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