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Back to back: 474 days have passed since the FTC confirmed that it was investigating the company, following revelations that a researcher associated with Cambridge Analytica's consulting firm had scanned Facebook user data into a digital file.
- Critics said Facebook had violated a previous agreement reached in 2012 with the FTC, demanding that the FTC be more cautious about users' privacy, thus allowing the agency to impose more penalties. heavy.
- At present, the Republican majority of the agency, consisting of three commissioners, reportedly signed a settlement of about $ 5 billion, with the two Democrats voting against the deal.
- The Department of Justice must review the bylaw before it becomes final.
What they say: The race to turn the potential settlement began as soon as the news was announced.
Capitol Hill Democrats and advocates of aggressive new privacy regulations have nullified the deal.
- Senator Richard Blumenthal (D-Conn.) Has called the $ 5 billion fine, the largest in the history of the FTC, a "blow on the wrist" for Facebook, the mammoth.
- Presidential candidate Senator Elizabeth Warren (D-Mass.) Said the settlement was a "victory for Facebook".
- Senator Mark Warner (D-Va.) Stated that "since the FTC can not or does not wish to put reasonable safeguards in place to ensure the protection of privacy and user data, the time has come for Congress d & # 39; act. "
Industrial groups and allies rented it.
- "The FTC's fine on Facebook is unprecedented and will undoubtedly inspire all businesses to adopt better privacy practices," said Carl Szabo, the association's legal advisor. professional NetChoice, in a statement.
What we do not know: The exact terms of the settlement, which should impose on Facebook's behavior restrictions going beyond the mere financial penalty.
- The FTC and Facebook declined to comment.
Facebook stock jumped on the news, suggesting that the markets did not see this as a blow to the social giant.
- The company itself has estimated that the fine could reach $ 5 billion earlier this year.
Yes, but: Even if the FTC case is settled, Facebook will face many challenges in the United States and abroad. This includes the review of state attorneys general, the possibility of future antitrust measures and a new income tax in France that has drawn the attention of the Trump administration.
The big picture: The fine has weighed on the privacy debate in Washington for months, raising the question of whether regulators have the power to control companies like Facebook.
- Proponents of strict privacy laws have stated that the FTC should be able to impose heavier penalties on first-time offending companies, for example, or to have a senior executive. broader to write regulations.
But the dynamics has seriously slowed down for a new national law.
- Last month, one of the key legislators of the Senate Trade Committee waived a bipartite working group considered a serious effort to negotiate a privacy protection bill benefiting a broad support.
The bottom line: The approved regulation may be a record, but it seems less impressive in the context of Facebook's revenues, which amounted to $ 15 billion for the last quarter published. Any impediment in the deal is more likely to reside in the restrictions imposed on Facebook's behavior – and if the agreement ignites a fire under lawmakers working on the issue of privacy.
Go further: Our guide for reading a settlement when it is finalized and published
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