Facebook Faces Global Privacy Probes Despite Continued Business Growth
Government agencies around the world continue to investigate Facebook's data privacy policies, threatening the company with hefty fines. Meanwhile, the social media giant sees strong earnings and steady user growth despite ongoing scandals.
Multiple government entities investigate Facebook's data policies, which potentially amount to hefty fines for the social media giant. CEO Mark Zuckerberg expresses support for stronger internet regulation, but this stance comes as the company remains deeply mired in controversy. It has been over a year since the Cambridge Analytica scandal first broke, exposing how the firm exploited Facebook's platform to influence the 2016 U.S. presidential election.
Despite facing intense scrutiny from users, employees, and critical congressional leaders, Facebook's business continues to thrive. The company boasts a massive market value of over $475 billion and posts a strong fourth-quarter earnings report in January. Facebook meets analyst expectations by reporting 1.52 billion daily active users and 2.32 billion monthly active users.
Investors ultimately ignore the continuous stream of privacy scandals that unravel throughout the year. As a result, Facebook's stock price climbs more than four percent over the past year. However, as international and federal agencies continue to probe the business, the company still faces the threat of severe financial penalties from a growing number of potential fines.