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Facebook Reaches $5 Billion Settlement With US Govt For Privacy Violations

Facebook Reaches $5 Billion Settlement With US Govt For Privacy Violations

The Federal Trade Commission (FTC) of the United States. UU It has agreed to a $ 5 billion agreement with Facebook to end its investigation into the controversial privacy practices of the latter. According to the Wall Street Journal (WSJ), the 5-member panel of the FTC voted 3-2 to approve the agreement, which now awaits the green signal from the US Department of Justice. UU It is not yet clear, however, as to what restrictions, if any, will be imposed on the social media giant according to the agreement. Both FTC and Facebook declined to comment on the story.

The fine, if finalized, would be the largest the FTC has imposed on a technology company, but it is still less than 10 percent of the company's annual revenue, which stood at a whopping $ 55.8 one billion in 2018, according to Statista. What's more, the company said in April that it expected to pay a $ 5 fine to resolve the investigation. He also said that he had already reserved about $ 3 billion to solve the investigation. The market had already taken into account the penalty, and Facebook's participation closed 1.81 percent more on Friday.

Many observers have expressed their dissatisfaction with the penalty they say is scarce due to numerous violations of the company's privacy over the years. Some even described it as a [prank] and a [finedisproportionatelymodest' . US congressman David Cicilline even claimed that "The FTC has just given Facebook a Christmas gift five months earlier" .

FTC began the investigation after a scandal involving the British consultancy Cambridge Analytica, which was accused of illegally accessing data of more than 87 millions of Facebook users without their prior knowledge. FTC investigated whether the Facebook data exchange with the British firm violated a 2011 consent agreement signed between Facebook and the regulator.

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