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If the Federal Trade Commission (FTC) continues its current momentum, it will probably condemn Facebook between $ 3 and $ 5 billion. In response to violations of the privacy of society, it will be the heaviest penalty ever imposed on a technology company.
The revealed amount was revealed Wednesday in the report of the results of the technology giant, $ 3 billion being set aside for the settlement. However, given the quarterly revenues generated by Facebook, many people see it as a joke.
Privacy violations relate to the collection of user data without the consent of many political consulting companies. The data was then used to create voter profiles, according to reports. This, however, is only part of the problem, as the company has also suffered a number of security breaches that have compromised user data.
The FTC is responsible for consumer protection in this type of situation and has been remarkably lax in the field of technology. Prior to 2012, the largest fine was imposed on Google in 2012, for only $ 22 million if a dishonest tracking tool was disclosed.
If a substantial fine was imposed on Facebook, it would show that the US government is serious about consumer protection and data control.
Facebook Fine: a slap on the wrist?
Although the figure mentioned above seems dramatic, many call it a pat on the fingers. The company pulled $ 15 billion from its core businesses in the first quarter of 2019, up 26 percent from last year. According to reports, Facebook has $ 45 billion in cash reserves.
In other words, if the breaches of privacy give the company so much money, a fine of $ 5 billion is a low cost for doing business. In fact, the fine is a joke, according to Matt Stoller, a member of the Open Markets Institute. "It would be a joke of fine – a two-week income penalty, at the parking ticket, for destroying democracy," he said.
The issue in dispute is profit-based. If a company profits enormously from the violations committed, the fines imposed by the government are only a minor cost easily absorbable. If the other option of dismantling the tech giant was addressed, the reality of profit margins would quickly allow society to come together in a different form.
Root level change
Because profits are the driving force of companies like Facebook, some have suggested that the best solution is a system that distributes profits and security. This is possible thanks to blockchain technology, which allows users to interact at the peer level, eliminating the most profitable companies.
Decentralized blockchains make this democratic system possible by using a multitude of computers to store user data. Users with exclusive access to their data in private keys, the risks of security breach or unauthorized sale are considerably mitigated.
Although Zuckerberg's company may be paying a fine, the debate over its triviality highlights the need for fundamental change within the sector. As long as consumers do not control their own data, the benefits are too important to ignore, even at a cost.
Do you think that the fine against Facebook is sufficient or should we take more radical measures? Can blockchain technology solve the woes of the social media industry? Let us know in the comments below!
Images courtesy of Shutterstock.
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