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Facebook may be about to put an inquiry from the Federal Trade Commission behind it. But he is confronted with a variety of other probes in Europe and the United States, some of which could present him with even greater headaches.
Although the FTC's $ 5 billion fine, expected by Facebook, is by far the heaviest for a tech company, it is the real concern of Facebook – and its investors and companies use it to advertise on its service – are other restrictions and government oversight that may result. This also applies to other surveys, which cover the whole world, from the European Union to Germany, via Belgium and New York, Canada and elsewhere.
"This tells us that regulators are increasing pressure," said Dimitri Sirota, CEO of BigID, a commercial data protection company, in an email. He said that the FTC's action, combined with recent European fines imposed on British Airways and Marriott, shows that regulators around the world are showing more and more daring in cracking down on confidentiality of the data. Facebook might think the fine is easily affordable, he said, but it hurts his image and reliability.
Facebook sentences record fine of $ 5 billion for violation of privacy
Beyond regulatory investigations, Cowen analyst John Blackledge pointed out that Facebook and other large companies also face broader antitrust concerns.
Facebook has had more than a decade of unhindered growth as a Silicon Valley Gold Child, confident that it will be able to self-regulate and keep the interests of its 2.4 billion users at heart. .
Then came Russian interference in the 2016 elections, misinformation and the Cambridge Analytica scandal, in which a political data mining company affiliated with Donald Trump's 2016 presidential campaign had mistaken access to personal data. of 87 million users.
Regulators, mainly in Europe but also in the United States, have gained momentum. And now, Facebook faces not only additional fines, but additional restrictions for its activities.
Irish Data Protection Commission
The Irish data regulator launched a Facebook survey following the Cambridge Analytica data leak last year. The question is whether the company complies with the strict European regulations that came into force in May 2018 regarding data protection. Under the new rules, companies could be fined 4% of the annual global turnover for the most serious offenses.
The investigation could potentially cost Facebook more than $ 2.3 billion in fines based on its 2018 sales, or even more if it made more money this year, which is almost certain. The commission, which manages online data regulation for the European Union, has close to a dozen open investigations on Facebook, among which its subsidiaries WhatsApp and Instagram, which could bring new ones. . Facebook says that it cooperates with investigations.
Housing and urban development in the United States
The US government accused Facebook of discrimination in high-tech housing in March for allegedly allowing landlords and real estate brokers to systematically exclude groups such as non-Christians, immigrants and minorities from broadcasting. announcements of houses and apartments.
Civil suits by the Department of Housing and Urban Development could cost the social network millions of dollars. More importantly, they are already affecting the company's business model, namely its ability to target ads with near-surgical accuracy. By its very nature, this type of targeting excludes some people and includes others. And it's not always legal.
The charges were made despite the changes Facebook announced a week ago to its ad targeting system. The company had agreed to reform its targeting system and abandon some of the practices advocated by HUD to prevent discrimination, not only in housing but also in credit and employment announcements. This decision was part of an agreement with the American Civil Liberties Union and other activists. But HUD did not join the colony. Facebook says that he continues to work with civil rights experts on these issues.
The czar of privacy protection in Canada
In Cambridge Analytica, the privacy officer in Canada announced in April that he was suing Facebook after finding that lax privacy practices allow personal information to be used by individuals. political purposes.
According to a joint report by privacy commissioner Daniel Therrien and his counterpart from British Columbia, important gaps have been discovered in Facebook's procedures. He called for tougher laws to protect Canadians. Facebook says that it takes the investigation seriously.
United Kingdom, Belgium, Germany
In October, UK regulators fined Facebook 500,000 pounds ($ 644,000) – a maximum fine – for failing to protect the privacy of its users in the Cambridge Analytica scandal. The company said it was appealing the fine, so the problem is still not resolved technically.
The Belgian Data Protection Authority and the German Federal Cartel Office are also studying Facebook's data collection practices.
Washington DC, Attorneys General of the States
If federal investigations were not enough, Facebook is also confronted with local government bodies. Attorneys General of Washington, California and California are currently studying Cambridge Analytica, while the Attorney General of New York is investigating the company's unauthorized collection of 1.5 million contact lists. Facebook said it was working with the New York Attorney General's office and that the collection was not intentional. He also says that he cooperates with other attorneys general in their endeavors.
FBI, SEC
Although the extent of their involvement in the FTC's investigation is unclear, Facebook has confirmed that it has received questions from the FBI and the Securities and Exchange Commission about Cambridge Analytica and is cooperating with it. investigation.
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