According to report, the popular social media platform Facebook has paid 5 billion USD as penalty to settle a probe into social networks’ privacy and data protection lapses. Federal Trade Commission (FTC) have approved the settlement in a 2-3 vote with two democratic members of consumer protection agency dissenting. We are seeing this is highest penalty ever paid by any organization. Let’s take have a look at story in detail.
Facebook Fined $5 billion for privacy lapses: Largest Penalty Ever
One thing is clear that FTC has approved the settlement with 2-3 votes and takes a strong decision that Facebook needs to pay $5 billion as penalty for privacy violation. On other hand, there is still need of the approval from Justice Department before finished this matter. However, there is no further detail released which will talk about the restrictions on how Facebook is able to use personal information. Let’s take have a look at statement of Charlotte Slaiman, the group’s Competition Policy Counsel on the matter.
“We don’t yet know key aspects of the settlement: whether Facebook must make any changes to its business model or practices as a result, By itself, this fine will not be sufficient to change Facebook’s behavior”
Facebook not respond to AFP query on the agreement
Last year, Federal Trade Commission (FTC) announced its investigation into 2011 privacy settlement with Facebook. Here, FTC was deal with Facebook on the matter that personal data on tens of millions of users was hijacked by political consultancy Cambridge Analytica which was involved on Donald Trump Campaign in 2016 as well. However, FTC questioned the Facebook about whether It improperly shared user data with business partners in violation of earlier settlement. In that year, Facebook had paid about USD 3 billion to 5 billion as expected for legal settlements on user’s data practices.
Facebook Critics: climbed 26% to USD 15.1 billion in first three month of this year
As per settlement of Facebook with FTC, Facebook’s stock value increased 1.8 percent after fine was announced, closing at 205USD which is highest as comparison to rest of year. On other hand, Facebook Chief Executive Mark Zukerberg is liable for penalty and states that government to do more regulate social networks, instead of leaving the work to companies whether it is big or small companies to come with those rules. They must follow such rules, Mark said in interview with BBC on 24 June. Mark have also said, the settlement which amounts to around one quarter of company’s yearly profit, will reignite the criticism from those who says this amounts to little more than a slap on wrist.
About Cambridge Analytica scandal
Facebook has said it believe the data of up to 87 million was improperly share with Cambridge Analytica (British Political Consulting Firm) that had access millions of data of innocent users. They use apps and games at that time which was designed in such a ways that helped the defunct consultancy to harvest user data as well as data of their friends.
Since, the scandal sparked several investigations around the world and finally, Facebook was fined 500,000 USD by UK’s data protection watchdog which states that the company had let a serious data breach of law take place. We are researching on the matter very deeply and we will defiantly post an update, if it will come in future. For any suggestions of queries, please write on comment box given below.