FTC Negotiates Multi-Billion Dollar Fine Against Facebook Over Privacy Violations
The FTC is negotiating a record-breaking multi-billion dollar fine against Facebook for privacy infractions. The massive penalty aims to financially impact the tech giant rather than serve as a minor inconvenience.
The Federal Trade Commission negotiates a multi-billion dollar fine against Facebook over ongoing privacy violations. This potential penalty represents an amount ten times larger than any previous tech fine from the regulatory body, drawing comparisons to the massive $14.7 billion settlement levied against Volkswagen in 2016.
Previous FTC fines against tech companies, such as the $22.5 million penalty Google paid in 2012, are too small to affect a corporation of Facebook's size. Because Facebook generates over $13 billion in quarterly revenue, regulators realize that only a multi-billion dollar penalty serves as a meaningful punishment rather than a minor annoyance.
Facebook states that it cooperates with officials in the US and UK, but the company is likely to push back hard in court if the FTC holds its ground. Regardless of the final financial amount, this regulatory process forces new transparency and reporting measures that hold Facebook accountable for its recent privacy transgressions.