Facebook Could Face Multi-Billion Dollar Fine Over Privacy Violations

Facebook and the Federal Trade Commission are negotiating over a multi-billion dollar fine to settle the agency’s investigation into the social media company’s privacy practices. It would be the largest fine the FTC has ever imposed on a tech company. The fine amount is yet to be determined.

The FTC is currently investigating revelations that Facebook improperly shared information of 87 million users with now-defunct British political consultancy Cambridge Analytica. The misconduct violates a 2011 agreement with the FTC to safeguard users’ privacy.

If the FTC and Facebook do not reach an agreement over the fine, the agency could drag Facebook to court over its privacy misconduct. The settlement may also call for changes in how Facebook does business.

The FTC’s biggest fine for a privacy lapse was $22.5 million levied on Alphabet’s Google in 2012.

European parliament Mark Zuckerberg

Mark Zuckerberg at F8, 2018. Source: Facebook

In 2015, Teva Pharmaceutical Industries agreed to pay at least $1.2 billion in a landmark settlement to resolve antitrust violations committed by Cephalon, which it had acquired in 2012.

The Washington Post reported that the FTC could levy a fine larger than the $22.5 million imposed on Google for Facebook. However, privacy and civil rights advocates argued that anything in million would be deemed ineffective in pushing the social media company to change its behavior.

In the UK, Facebook was fined £500,000 by the Information Commissioner’s Office in the wake of the Cambridge Analytica scandal, for failing to protect users’ personal information.

Facebook may end up in even bigger trouble with the Irish Data Protection Regulator, which is currently probing the social media giant for multiple admissions of security flaws. It could be fined up to 4% of its annual turnover if found to be in breach of the tough new GDPR rules.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Tesla Cybertruck V/s Rivian’s R1T

Tesla Cybertruck V/s Rivian’s R1T

The Tesla Cyberturck left many disappointed with its alien space ship-like design; though both trucks are still under production, what matters most is what comes under the hood.
6 hours ago
College sports is multibillion dollar industry in the US

College sports is multibillion dollar industry in the US

According to data analyzed by GOBankingRates, head football coaches, closely followed by basketball coaches, easily rack up seven-figure salaries in the US.
1 day ago
Top women influencers in finance and wealth management

Top women influencers in finance and wealth management

It is only in the last century or so that women have been publicly acknowledged for their roles as leaders in various fields. Here’s a list of women influencers by Industry Leade
2 days ago
Brian Goldner, who led Hasbro’s transformation into an entertainment giant, passes away at 58

Brian Goldner, who led Hasbro’s transformation into an entertainment giant, passes away at 58

Brian Goldner, the CEO and Chairman of toymaker Hasbro, has died at age 58, the company said Tuesday (Oct. 12).
4 days ago
JPMorgan Chase CEO Jamie Dimon slams Bitcoin as worthless

JPMorgan Chase CEO Jamie Dimon slams Bitcoin as worthless

JPMorgan Chase CEO Jamie Dimon took another potshot at Bitcoin on Monday by calling the cryptocurrency “worthless” likening trading BTC to smoking cigarettes.
5 days ago
Refiner Eneos to buy Japan Renewable Energy for $1.8 billion

Refiner Eneos to buy Japan Renewable Energy for $1.8 billion

Eneos Holdings, Inc., Japan’s biggest refiner, announced Monday it would buy Japan Renewable Energy (JRE) for $1.8 billion to expand its low-carbon businesses.
6 days ago