NYTIMES: Facebook Expects to Be Fined Up to $5 Billion by F.T.C. Over Privacy Issues
Posted on April 24th, 2019
Facebook disclosed in its quarterly financial results that it estimated a one-time loss of $3 billion to $5 billion in connection with an "ongoing inquiry" with the F.T.C.
Credit Andrew Harnik/Associated Press
By Mike Isaac
April 24, 2019
SAN FRANCISCO — Facebook said on Wednesday that it expected to be fined up to $5 billion by the Federal Trade Commission for privacy violations, in what would amount to a record penalty for a technology company by the agency.
The social network disclosed the amount in its quarterly financial results, saying it estimated a one-time loss of $3 billion to $5 billion in connection with an "ongoing inquiry" with the F.T.C. Facebook added that "the matter remains unresolved."
The Silicon Valley company and the F.T.C.’s consumer protection and enforcement staff have been in negotiations for months over a financial penalty for claims that Facebook violated a 2011 privacy consent decree. In 2011, the company had promised a series of measures to protect its users’ privacy after an investigation found it had harmed consumers with its handling of their data.
Last year, the social network came under fire again for mishandling user data, including improper handling of people’s data involving Cambridge Analytica, a political consulting firm, as well as a major data breach.
Follow Mike Isaac on Twitter: @MikeIsaac.