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SAN FRANCISCO – Facebook announced Wednesday that it was expecting a fine of up to $ 5 billion from the Federal Trade Commission for breach of privacy, which would constitute a record sanction of the share of a technology agency.
The social network has revealed the amount in its quarterly financial results, claiming to have estimated a one-time charge of $ 3 billion to $ 5 billion related to an "ongoing investigation" by the FCT. Facebook added that "the question remains unresolved, and there can be no assurance as to the timing or terms of any end result".
Silicon Valley Company and F.T.C. We have been negotiating for months a financial penalty for allegations that Facebook violated a 2011 privacy decree. In 2011, the company promised a series of measures to protect the privacy of its users after an investigation revealed that its data processing had harmed consumers. F.T.C. Last year, Facebook opened a new investigation after Facebook was again criticized for the inappropriate handling of personal data involving Cambridge Analytica, a political consulting firm, as well as for a major data breach.
Global regulators, privacy advocates and the technology sector have viewed the survey as a referendum on the US's ability to harness the power of tech giants. A fine of $ 3 billion to $ 5 billion would be an important step for F.T.C., considered to have allowed the technology industry to develop unhindered.
In 2012, the biggest fine imposed on a technology company was a $ 22 million fine against Google for misrepresenting how it used certain online tracking tools.
If the commission imposes a fine of $ 5 billion, it would bring the United States closer to the actions of the regulatory authorities in Europe. Last year, the regulators out there sentenced Google to a record fine of $ 5.1 billion for abusing its power in the mobile phone market and the company to change its practices.
F.T.C. refused to comment. The agency has not yet made a final decision, said two people familiar with the situation, who were not allowed to speak in public.
A fine of $ 5 billion would be considerable, but it may be a price that Facebook is willing to pay. This amount represents only a small fraction of the company's $ 56 billion in annual revenue, while easing the regulatory pressure that has intensified over the past two years.
"It would be a joke of fine – a two-week penalty of revenue and parking penalties for destroying democracy," said Matt Stoller, a member of the Open Markets Institute, a very thought-provoking group. critical of the power of technology companies.
More useful for Facebook would be any F.T.C. mandates that limited its ability to share data with trading partners or required it to take more action to inform consumers when and how they were collecting data.
"These will have the most lasting impact on the privacy of consumers," said Ashkan Soltani, former chief technology officer at the trade commission.
Even as the F.T.C. and Facebook continue to negotiate, the company's business remains robust. Facebook said Wednesday that its revenues had increased 26% in the first quarter to reach $ 15 billion. Net income fell 51% from the previous year, to $ 2.4 billion, due to the anticipated non-recurring charge related to the CIT. investigation. The company has more than $ 40 billion in cash reserves.
Mark Zuckerberg, founder and CEO of Facebook, said Wednesday in a statement that he was focusing on a more privacy-focused vision for the company, a vision that he had described in March. At the time, Zuckerberg had announced his intention to begin directing people to private conversations and moving away from public broadcasting.
"We are focused on building our privacy-focused vision for the future of social networks, and we work collaboratively to address important Internet-related issues," he said.
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