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Facebook to pay record US$5 bil fine over privacy; faces antitrust probe

Reuters
Reuters • 5 min read
Facebook to pay record US$5 bil fine over privacy; faces antitrust probe
(July 25): Facebook Inc will pay a record-breaking US$5 billion ($6.8 billion) fine to resolve a government probe into its privacy practices and will boost safeguards on user data, the US Federal Trade Commission and the social media company said on Wedn
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(July 25): Facebook Inc will pay a record-breaking US$5 billion ($6.8 billion) fine to resolve a government probe into its privacy practices and will boost safeguards on user data, the US Federal Trade Commission and the social media company said on Wednesday.

After the stock market closed, Facebook disclosed as a part of its earnings report that the FTC told it last month that the commission had opened a separate antitrust investigation of the company. The FTC, which early in the day issued a statement and held a press conference about the privacy settlement, did not mention an antitrust probe.

The FTC probe that resulted in the US$5 billion settlement uncovered a wide range of privacy issues. It was triggered last year by allegations that Facebook violated a 2012 consent decree by inappropriately sharing information belonging to 87 million users with the now-defunct British political consulting firm Cambridge Analytica. The consultancy’s clients included President Donald Trump’s 2016 election campaign.

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