FAQ on Facebook

This is where Facebook is likely to have the biggest impact on bottom line.

The EU General Data Protection Regulation, which imposes a maximum fine of 4% of a company's annual business turnover, could theoretically result in a fine of up to € 1.6 billion. of dollars. The European Data Protection Commissioner has issued statements stating that he was unhappy with the company's response so far.

In the United States, the Federal Trade Commission will probably also look into the incident. FTC Commissioner Rohit Chopra tweeted "I want answers on Friday." The Commission may not have the weight of the new GDPR fine structure, but their ability to monitor companies for years after an incident is significant.

Prosecution will surely follow, especially if Facebook reveals that some customers have been victims of misuse of their accounts or theft of their data and misuse elsewhere. Uber recently paid $ 148 million to settle with 50 US states over a violation involving personal information.

It is also possible that regulators are questioning Facebook's organizational structure on cybersecurity. Company security officer Alex Stamos stepped down in August and the company said it would not replace him. Instead, they chose to decentralize the security function in all areas of the company's business, an unconventional decision that could be scrutinized now that the company has suffered a serious violation.