“US regulators have approved a $5 billion penalty to be levied on Facebook to settle a probe into the social network’s privacy and data protection lapses.”
Reported by The Wall Street Journal last Friday.
The Settlement was approved by the Federal Trade Commission in a 3-2 vote, with 3 Republicans voting to approve it and two Democratic Members disagreeing.
The report also stated that:
“The deal, which would be the largest penalty ever imposed by the FTC for privacy violations, still needs approval from the Justice Department before it is finalized.”
Although the details have not been revealed yet the deal will likely include changes to how Facebook uses a user’s personal data.
Despite all criticisms Facebook recently faced over its improper use of users’ data, the company’s income and user base are gradually increasing. With Facebook harvesting over $15 billion in revenue for the first quarter of 2019 alone. The social media network also added 39 million daily active users to its platform. Keeping in view this fine is not a big deal to such a juggernaut company like Facebook.
The fine of $5 Billion is just Facebook 1 month earning. But still, it is the biggest fine that has Facebook has stumbled upon. This fine is far bigger than $22.5 million fine which was put up by Google by violating their privacy rules.
Moreover one of the Democrat, David Cicilline said on Twitter and I quote that:
“This fine is a fraction of Facebook’s annual revenue. It won’t make them think twice about their responsibility to protect user data.”
He called it:
“A Christmas present five months early.”
Another Democrat, Senator Richard Blumenthal said:
“Such a financial punishment for purposeful, blatant illegality is chump change for a company that makes tens of billions of dollars every year.”
Currently, the agreement is waiting for approval by the US Justice Department.
Stay Tuned For More Updates (IST)
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