Facebook likely to be fined $5bn for privacy violations
Facebooks monthly active users stand at 2.38 billion, an increase of 8% year over year.
NEW YORK (Web Desk) – Facebook likely to pay $3-5billion fine for violating the privacy of its users. Federal regulators and Facebook settlement would cost the tech giant a dent at their first quarter profits.
Facebook revealed in their first quarterly financial results that it might pay up to $5bn fine.
According National Public Radio, Facebook has been in negotiations with the Federal Trade Commission following concerns that the company violated a 2011 consent decree. Back then, company leaders promised to give consumers "clear and prominent notice" when sharing their data with others and to get "express consent."
But, experts say, Facebook broke its promise. Just one example: giving user data to Cambridge Analytica, the political consulting firm that did work for the 2016 Trump campaign.
Facebook estimates the fine will be in the $3 billion to $5 billion range and has set aside $3 billion for payment. "The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome," the company’s statement says.
This would not be the largest fine issued by the FTC.
In 2016, the agency reached settlements with Volkswagen totaling up to $14.7 billion. Facebook’s total revenue for the first quarter stood at more than $15 billion. So whatever the final figure, the company has the money to pay for the estimated fine.
Facebook’s monthly active users stand at 2.38 billion, an increase of 8% year over year.
