The Federal Trade Commission has voted and confirmed fining Facebook approximately $5bn to settle the investigation concerning the company’s privacy infringement that propelled following the Cambridge Analytica disclosures.
The Washington Post and Wall Street Journal, both referring to unknown sources familiar with the issue.On Friday evening that the settlement was affirmed by a 3-2 vote that broke along party lines which the Republicans supported and Democrats opposed. The justice department is awaited to make final consent of the fine.
The FTC’s investigation started In March 2018. The Observer uncovered that the political consultancy Cambridge Analytica had acquired the private data of more than 50m Facebook clients without consent. Facebook had agreed under a 2012 assent order originating from a previous FTC investigation on privacy concerns to improve user privacy. The investigation focused primarily on whether the declaration was violated.
The $5bn fine would be the biggest at any point levied by the FTC against a technological company. The largest ever against any organization for privacy infringement. Facebook said that it was expecting when it unveiled in April 2019 that it was nearing the finish of negotiations with the FTC and expected a fine of somewhere in the range of $3bn and $5bn.
As an essential part of the agreement, Facebook will presently review the way it handles client data information, yet the settlement won’t confine the company’s capacity to share data information with third parties, reports stated.
The critics state the progressions required of Facebook are not substantial enough, and the fine will barely make a dent in Facebook’s bank balance. The company had more than $15bn income in the initial three months of 2019. Financial experts seemed to agree, and Facebook’s stock cost jumped over 1% when the news broke just before trading closed for the weekend.
David Cicilline, the Democratic congressman who seats the House subcommittee on antitrust issues, responded to the news on Twitter, saying: “The FTC just gave Facebook a Christmas present five months ahead. It’s exceptionally disappointing to see such a colossally big company, that did such grave misconduct is only getting a slap on the wrist.” According to international media.
The company is relied upon to face regulatory challenges as it looking forward and launch its new digital currency ‘Libra’ in 2020. The House, financial services committee, is holding a panel meeting on 17 July to discuss Facebook’s plans for ‘Libra’.