Tencent Technologies News, July 13, according to foreign media reports, on Friday, local time, five members of the Federal Trade Commission (FTC) voted in a 3:2 vote to pass a settlement agreement with Facebook, agreeing to end the social media with a fine of $5 billion and other additional restrictions. The giant's long-term privacy survey.
According to people familiar with the matter, the Republican majority in the FTC supports the agreement, while Democratic members oppose it. Since then, the case will be transferred to the civil sector under the Ministry of Justice, and it is not clear how long it will take to finalize the agreement. The review by the Ministry of Justice is part of the FTC process, but usually does not change the results of the latter.
It is expected that the settlement agreement will include other restrictions on how Facebook treats users'privacy by government agencies. It is not immediately clear what additional provisions are included in the settlement agreement. Both FTC and Facebook spokesmen declined to comment.
On April 24, Facebook said it expected to pay up to $5 billion in fines to end the investigation. However, the ruling has stalled due to differences between Republicans and Democrats within the FTC, and Democrats are pushing for tighter regulation of the social media giant.
The FTC survey began more than a year ago after reports that personal data from tens of millions of Facebook users had fallen illegally into the hands of Cambridge Analytica, a data company that ran for President Trump in 2016. The FTC's investigation focused on whether this negligence violated the settlement reached between the two sides in 2012, when Facebook agreed to better protect users'privacy.
Since the abuse of data scandal at Cambridge Analytics, Facebook's other privacy mistakes have also been exposed, adding to its situation. The settlement could easily exceed previous record fines for violating FTC orders, such as a $22.5 million fine for Google. In 2012. FTC has limited power to impose fines for first privacy violations, but is sanctioning
Facebook's share price rose slightly more than 1% after the news came out, although the amount was $2 billion more than the company's reserve for settlement.
But the FTC's ruling could expose Republicans to criticism from Democrats and weaken their influence on the FTC. In the past, FTC has sometimes been criticized for its indifference to privacy issues. After Facebook paid billions of dollars in fines, many Democrats criticized them for being too small.
Facebook and other large technology companies are receiving more and more close attention in Washington, D.C., including the one hosted by the White House on Thursday.
Facebook is also preparing a potential review of its competitive behavior. Last month, it was reported that the Justice Department was preparing for an anti-trust investigation into Alphabet, the parent company of Google, and was given jurisdiction to investigate Apple. The FTC has taken over possible anti-trust jurisdiction over Facebook and Amazon.
Facebook is also preparing for next week's congressional hearings on its proposed encrypted currency, which has been questioned by President Trump and many regulators. Despite new initiatives by Google and Facebook, disrupting privacy controls is like playing Carnival games. They will soon find another way to track users for advertisers.
The privacy settlement comes at a time when the FTC is under increasing political pressure to take a stronger stand against Facebook and other technology companies, while European law enforcement is seen as the world's number one policeman in the technology industry. With the amount of fines approved this week, the FTC has issued a higher amount than the EU's privacy law requires.
Facebook's first FTC settlement, finalized in 2012, accepted charges that the company repeatedly violated its privacy commitments to site users, including sharing their data with advertisers and other third parties. FTC, for example, said at the time that Facebook-based applications such as TV test could find users' relationship status or photos, although Facebook said it would not share unnecessary personal information with the app. Facebook partially resolved the case by promising not to deceive users.
In 2017, Facebook said a personality prediction app collected data from tens of millions of users and shared the data with Cambridge Analytics. The Facebook reopened the case and imposed harsher penalties on Facebook who committed the case again.
However, the huge fines are unlikely to satisfy Facebook's most determined critics, as did the billions of dollars in fines imposed on big banks after the 2008 financial crisis, which hardly diminished the anger on Wall Street.
Lawmakers from both parties are working on new privacy rules for large technology companies, and many Democratic presidential candidates want to investigate the market impact of Facebook. Senator Elizabeth.