Fine but that’s not good enough
The Federal Trade Commission (FTC) approved a $5 billion settlement – FTC’s largest fine ever – with Facebook for mishandling users’ data (Cambridge Analytical Scandal).
The full package
Asides the $5 billion fine Facebook has to create an independent board charged with overseeing privacy-related efforts at all levels of the company and also giving periodic updates on how Facebook is complying with FTC requirements.
The Securities and Exchange Commission (SEC) is to charge Facebook a separate $100 million related to the same issue. Also this week, The U.S. Department of Justice announced an antitrust probe involving Facebook, and the FTC opened another official investigation into antitrust issues.
Bottom line: Considering that $5 billion is just less than a tenth of Facebook’s annual revenue, some say it’s pocket change for Facebook and not nearly enough to phase the company. Facebook’s Business keeps thriving despite regulatory scrutiny as its 2019 2nd quarter results beat expectations – $16.89 billion Revenue, 2.41 billion monthly active users.