$5B FTC fine set to be levied on Facebook approved by the US regulators to settle a probe into the social network’s privacy and data protection lapses.
The position of the US Federal Trade Commission:
The US Federal Trade Commission has voted to approve a fine of about $5bn for Facebook over privacy violations.
The fine the FTC is about to levy on Facebook is $5 billion.
Which, is considered as the largest fine was given to a technology company.
Easily eclipsing the second largest, $22 million for Google in 2012.
Why the FTC took that decision?
FTC investigation :
It comes after an FTC investigation into allegations that the social media platform inappropriately shared the information of 87 million users.
Evidence declared to improve their position :
The FTC has voted to fine Facebook for privacy violations and mishandling user data.
Most of them cited an unnamed person familiar with the matter.
Facebook and the FTC declined to comment. The 3-2 vote broke along party lines, with Republicans in support and Democrats in opposition to the settlement.
Facebook has earmarked $3 billion for a potential fine and said in April it was anticipating having to pay up to $5 billion.
But while Wall Street—and likely Facebook executives—may be breathing a little easier.
The fine alone has not appeased Facebook critics, including privacy advocates and lawmakers.
The deal still needs approval from the Justice Department before it finalized.
While, Facebook did not immediately respond to an AFP query on the agreement.
The settlement would be in line with Facebook’s estimate earlier this year when it set aside $3 billion to $5 billion for legal settlements on “user data practices.”
Some questions were addressed to Facebook :
Facebook has also faced questions about whether
- it improperly shared user data with business partners in violation of the earlier settlement.
The leading social network with more than two billion users worldwide has also been facing inquiries on privacy from authorities in US states and regulators around the world.