Facebook was fined $ 5 billion for acts of leaking user data - Photo 1.

Facebook was fined $ 5 billion for acts of leaking user data

According to a person close to the incident with the Wall Street Journal (WSJ), the US Trade Commission FTC accepted Facebook's $ 5 billion settlement for the Cambridge user information leak. Analytica in 2018. A series of other media agencies also reported on this incident.

This is also the biggest penalty that FTC has ever imposed on a technology company. Earlier, the agency's biggest penalty for a technology company was in 2012 when Google accepted a $ 22 million fine for its privacy-related acts. This penalty is equivalent to 9% of Facebook's 2018 revenue.

Apple co-founder Steve Wozniak warned people to stay away from Facebook forever

The settlement also drew criticism from some Senators and members of Congress, including Democratic Senator Mark Warner:

In his Friday statement, Mr. Warner said: "Based on how Facebook repeats its privacy violations, there is a clear need for a fundamental structural reform. With the FTC unable or unwilling to take appropriate preventive measures to ensure that privacy and user data is protected, now is the time for Congress to act.. "

Republican Congressman, David Cicilline called this settlement agreement "a slap of love"for Facebook.

"This fine is just a small piece of Facebook's annual revenue. "He said in his statement on Friday."It will not make them think twice about the responsibility to protect user data."

In April this year, when it reported its first quarterly business results, Facebook said it had spent about $ 3 billion on the upcoming FTC fine.

In its most recent quarterly earnings report, Facebook reported revenue of $ 15.1 billion, 26% higher than the previous year. At that time, that $ 3 billion represented about 6% of the cash and liquidity stocks that Facebook was holding.

Neither FTC nor Facebook currently respond to requests for comment.

The FTC began paying attention to Facebook from March 2018 after reports said that political consulting firm Cambridge Analytica had access to data of 87 million Facebook users. The agency is concerned that Facebook has violated the terms of the 2011 agreement, requiring the social network to inform users clearly about their data being shared with third parties.

Refer to CNBC

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