FTC Approves $5 Billion Facebook Privacy Settlement Amid Partisan Divide
The Federal Trade Commission ends its privacy probe into Facebook with a $5 billion settlement that critics call a mere wrist-slap. The deal includes new privacy restrictions but falls short of the stricter oversight Democratic commissioners demanded.
The U.S. Federal Trade Commission concludes its latest privacy investigation into Facebook with a $5 billion settlement. A Republican majority carries the 3-2 party-line vote, sending the agreement to the Justice Department's civil division for finalization. Despite the massive headline figure, Facebook already sets aside $3 billion for the fine, meaning the tech giant makes up the difference in less than a single quarter of its roughly $15 billion revenue.
This settlement resolves the FTC's examination into whether Facebook violates a 2012 consent decree regarding user data protection. The inquiry stems from the Cambridge Analytica scandal, where millions of users' private data face improper collection during the 2016 presidential election. Democratic commissioners push for greater oversight of the social network, but the Republican majority overrides these concerns to finalize the current deal.
The agreement includes new government restrictions on how Facebook handles user privacy, yet many lawmakers view the financial penalty as a simple cost of doing business. Facebook continues to face intense scrutiny over its potentially anti-competitive practices and its newly announced Libra cryptocurrency. As public and political pressure mounts to break up big tech companies, this settlement allows Facebook to sidestep stricter regulatory measures for now.