Facebook FTC fine will be $ 5 billion, one month of revenue

The Federal Trade Commission and Facebook reportedly agreed to a $ 5 billion fine that would settle the FTC's privacy investigation on the social network.

Facebook having reported $ 15 billion in revenue last quarter, the $ 5 billion fine would equate to one month of revenue.

The FTC voted 3-2 to approve the settlement this week, with three positive votes from Republican commissioners and two negative votes from Democrats, the Wall Street Journal reported today, citing unnamed sources. The Democrats of the commission "insisted on a stricter control," wrote the Journal.

The FTC has not announced the transaction publicly.

"The case has been transferred to the civilian division of the Ministry of Justice and it is not clear how long it will take to finalize it," writes the Journal. "The Justice Department's revisions are part of the FTC's procedure but do not usually change the outcome of the FTC's decision."

The regulation "should include other government restrictions on how Facebook treats users' privacy," but the Journal did not get detailed information about the nature of these restrictions.

FTC officials reportedly discussed whether Facebook's CEO, Mark Zuckerberg, should be held personally responsible for his company's privacy breaches, but there is no indication today that San Zuckerberg will be punished. .

The FTC's investigation began in March 2018 after revelations that up to 87 million users were leaked to Cambridge Analytica, a political consulting firm that had worked for the presidential campaign of Donald Trump. The investigation aimed to determine whether Facebook was violating the terms of its 2011 agreement with the FTC, banning Facebook from misrepresenting the confidentiality or security of user information and forcing Facebook to obtain the express consent of consumers before to make changes that exceed their privacy settings.

In April, Facebook warned investors that it would incur a fine of $ 3 to $ 5 billion to the FTC, adding that she was not expecting this fine to be tax deductible. The company reported net income of $ 2.4 billion in the first quarter, after accounting for planned legal fees of at least $ 3 billion. Facebook's share price has risen by 1.8% today.

Democratic members of Congress ransacked the settlement. "This $ 5 billion fine is barely a wrist shot, not even a slap," said Senator Richard Blumenthal (D-Conn.) In a statement. "Such a financial punishment for deliberate and blatant illegality is a radical change for a company that earns tens of billions of dollars every year." Will Facebook be forced to change its current and systematic abuse of privacy? 39, after the reported settlement, the answer is unfortunately no. "

Senator Ron Wyden (D-Ore) acquiesced. "Despite the Republicans' promise to hold high technology accountable, the FTC seems to have failed miserably at its best opportunity," said Wyden. "No amount of fine can replace the need to hold Mark Zuckerberg personally responsible for the gross and repeated violations of US privacy, but this reported fine is a mosquito bite for a company the size of Facebook."