Facebook is hit with a $5 billion fine by the FTC for privacy violations – the largest ever levied on a tech company
- The Federal Trade Commission has voted to approve a fine of about $5 billion for Facebook over privacy violations
- The 3-2 vote broke along party lines, with Republicans in support and Democrats in opposition to the fine
- The FTC report has been moved to the Justice Department for review. It is not clear how long it will take to finalize
- The fine would be the largest the FTC has levied on a tech company – but it will do little to dent the reserves of Facebook, who made $56 billion last year
The Federal Trade Commission has voted to fine Facebook a record-breaking $5 billion following a long-running investigation into the tech giant’s repeated failure’s to protect its users’ privacy, the Wall Street Journal reported on Friday.
With the motion passed by a vote of 3-2, FTC’s decision broke party lines, with the Republican majority voicing support of the fine, while Democratic commissioners voice objections.
The next stages will be handled by the Justice Department’s civil division, though for now it remains unclear how long it will take to finalize.
According to WSJ sources, the vote will be reviewed by the Justice Department, as required by protocol, but it’s incredibly the verdict will be reversed.
The Federal Trade Commission has voted to approve a fine of about $5 billion for Facebook over privacy violations
For now, the specifics of the settlement remain largely unknown, except for the figure which is believed to be in the region of $5 billion.
Once finalized, the fine will become the largest ever levied on a tech company, but it won’t make much of a dent in Facebook’s reserves, which registered more than $56 billion in revenue last year alone.
But the deal may also include other government restrictions on how Facebook handles and regulates user privacy.
The divide between Republicans and Democrats on the matter was irked in large by the latter pushing for tougher oversight of Facebook in addition to the fine.
The FTC’s investigation into Facebook began more than a year ago, after the data of millions of users of the social media site wound up in the possession of Cambridge Analytica, a firm assisting with Donald Trump’s 2016 presidential campaign.
Once finalized, the fine will become the largest ever levied on a tech company, but it won’t make much of a dent in Facebook’s reserves, which registered more than $56 billion in revenue last year alone
The FTC’s investigation into Facebook began more than a year ago, after the data of millions of users of the social media site wound up in the possession of Cambridge Analytica, a firm assisting with Donald Trump’s 2016 presidential campaign
The Cambridge Analytica breach came as one of many leaks for the social-media giant, only adding to the FTC’s grievances.
It also acknowledged giving big tech companies like Amazon and Yahoo extensive access to users’ personal data, in effect exempting them from its usual privacy rules
In response, Facebook has since repeatedly vowed to do a better job corralling its users’ data, but fell short of FTC expectations.
Facebook and other prominent tech companies finds themselves under increasing scrutiny in Washington DC.
On Thursday, the capital held a ‘social media summit’ at the White House where President Trump voiced particular disdain about Silicon Valley and its perceived disfavoring of conservatives.
Facebook wasn’t invited to the event, neither were other tech companies.
The Zuckerburg founded site claim to police their platforms regardless of political ideology.