FTC allegedly fines Facebook $5 billion for privacy violations

By Dhriti Datta | Published on 13 Jul 2019
FTC allegedly fines Facebook $5 billion for privacy violations

Experience great storytelling anytime, anywhere on Audible

Feel the thrill of the best stories and more with Audible. Start your 30-day Free trial now to get your Free Audiobook! Monthly ₹199 thereafter.

Click here to know more


FTC has approved a record-breaking $5 billion penalty for Facebook's privacy violations.

According to reports, Facebook had already earmarked around $3 billion for a potential penalty.

The 3-2 vote broke along party line with Republicans in support and Democrats in opposition of the settlement.

According to multiple reports, after months of back and forth, the Federal Trade Commission (FTC) has reportedly approved a record-breaking $5 billion Facebook settlement for privacy violations. This record-shattering settlement is the largest one the FTC has ever given to a technology company, easily overshadowing the now-measly $22 million fine given to Google in 2012, which is still the second largest. The penalty of $5 billion comes after a year of investigation.

Nevertheless, the penalty was long-expected and one which Facebook is, in all likeliness, well prepared for. It is unlikely that this penalty will even make a dent in the social media giant’s deep pockets. However, the penalty will certainly add extra restrictions and more scrutiny over the company. Multiple reports stated that the FTC voted to penalise Facebook for privacy violations as well as mishandling user data. Many of these reports have cited an anonymous individual who is familiar with the matter.

Allegedly, the 3-2 vote broke along party lines. The Republicans were in support of the settlement while the Democrats opposed it. The case will now move to the Justice Department’s civil division for further review. It is still not clear how long the process will take, however, it is likely to be approved here as well. 

A $5 billion fine would possibly spell doom for many companies, however, this is not the case with Facebook. The company generated nearly $56 billion in revenue in 2018 and analysts expect this year to be around $69 billion. The company will also be able to exclude this amount from its adjusted earnings results as a one-time expense. This figure is important since investors and finance analysts pay attention to it.

Facebook had already earmarked around $3 billion for a potential penalty, and in April this year, they even stated that they expected to pay up to $5 billion as a fine.


LG's 2019 TV Lineup   NanoCell, OLED and UltraHD TVs: What's New
Dhriti Datta

Perpetually sporting a death stare, this one can be seen tinkering around with her smartphone which she holds more dear than life itself and stuffing her face with copious amounts of bacon.

Huawei Honor Band 4 Running

Digit caters to the largest community of tech buyers, users and enthusiasts in India. The all new Digit in continues the legacy of Thinkdigit.com as one of the largest portals in India committed to technology users and buyers. Digit is also one of the most trusted names when it comes to technology reviews and buying advice and is home to the Digit Test Lab, India's most proficient center for testing and reviewing technology products.

We are about leadership-the 9.9 kind! Building a leading media company out of India.And,grooming new leaders for this promising industry.

DMCA.com Protection Status