Friday , August 19 2022

FTC is struggling to reach a consensus about how much to fine Facebook


Last month, we told you that Facebook had taken a $ 3 billion charge against its first quarter income. The company made this book-keeping record expecting to receive a $ 3 billion fine to $ 5 billion from the FTC linked to the Cambridge Analytica scandal. It is reported that 87 million Facebook users were sold their personal profiles to the consultancy company which is now void from a third party without their consent. That happens to break a FTC consent order that Facebook signed back in 2011. The Facebook decree ordered not to share its subscribers' unauthorized profiles.
Meanwhile, the Food Technology Center is struggling to determine how difficult it is to spoil Facebook, New York Times reports. The newspaper marks a trio of anonymous sources familiar with the commissioners' discussions. They say that the five FTC commissioners, a few months ago, have agreed to hit Facebook with a "historical penalty" designed to fit the gravity of Facebook crime. But now, it seems that the commissioners are fighting among themselves, failing to reach a consensus on how big is a fine to withdraw from the company.

Apart from arguing about Facebook's punishment, two of the anonymous sources say commissioners have shared about what to do with Facebook's co-founder and CEO, Mark Zuckerberg. The question is how much it should be punished and to hold it personally responsible for using these user profiles. The company says Zuckerberg should not be responsible for the actions of his 35,000 workers.

The Food Technology Center is said to be close to making a decision, and an announcement could be days away. The fine will be the most easily claimed by a technology company from the Food Technology Center. Back in 2012, the Google agency fined $ 22.5 million. In that case, the FTC found that Google had managed to defeat privacy settings on Apple's Safari browser. This allowed the giant search to track users as they navigate their way around the internet.

Some expect Facebook's death penalty to be an insult to the wrist alone. Still, a fine of $ 5 billion would represent just over a third of the company's first quarter revenue. It would also be about 9% of the 2018 Facebook revenue of $ 55.8 billion. That would be even higher than the 4% of revenue companies can get for a fine for breaching the EU's General Data Protection Regulation (GDPR). The regulation came into force last year and requires a company to obtain permission from a user living in the EU before using its personal data.

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