Facebook may face multi-billion fine, and for that it is negotiating with FTC

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    Facebook after having a year full of scandals when the Cambridge Analytica scandal came to the front last year, the media giant has to face privacy activists, user backlash and then the government pressures and now Federal regulators may be reaching closer to hit the company with a massive fine over its privacy breaches.

    Facebook in last week had confirmed to CNN Business that it is in negotiations with the Federal Trade Commission; after a report unveiled that the agency is considering charging a record fine against the company for violating an earlier settlement.

    The settlement required Facebook to get user’s approval before sharing of data or making any changes to it and also prevents the firm from misrepresenting security of user data. But, after Cambridge Analytica scandal in which Facebook had shared information of about 87 million of its users with the data analysis firm, federal officials were in view that the company had violated the FTC’s ruling by sharing the information without having consent of the affected users but even without knowledge of theirs.

    Under that settlement, Facebook also agreed audits for 20 years.

    Since March 2018, FTC has been investing the role of company in the privacy breach raised from sharing of data with a political consulting firm, Cambridge Analytica, and subsequently came under more public criticism when it later on revealed that the company had handed over the user data to more companies than it had admitted previously and also uncovered several other breaches cases including sharing of user’s private messages with other tech companies, storing of user’s those photos which were never been posted on the platform and turned the private posts of about 14 million users into public posts.

    News of negotiations uncovered when on last Thursday the Washington Post, citing two unnamed sources, reported that Facebook is in talks with the FTC over a fine, which could possibly be coming in as multi-billion fine for the company, and if imposed it will be the largest ever fine in the United States levied by the agency.

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    Javier Davis produces news on stocks, currencies, bonds, commodities, and real estate. His in-depth research covers most of the major financial markets in America, Europe, and Asia. His research is based on the interconnected relationships among economic and technical factors that drive valuations in the markets, with an emphasis on how to formulate investment strategies. From interest rates to inflation to economic growth and much more, the fundamental concepts presented on this website provide an essential foundation of knowledge for investors to profit in stocks, bonds, commodities, currencies, and real estate markets.

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