Facebook to pay $5bn to resolve FTC privacy probe | Tech Wash

If Mark Zuckerberg thought that
Facebook’s political problems were over, he might
have to think again. The social media
company announced that it had finally reached a
deal with the US Federal Trade Commission, whereby it will
pay $5bn to settle claims that it violated users’
privacy when it allowed their data to be passed
on to a third-party app without them knowing. This was the so-called
Cambridge Analytica scandal. But as part of the
same settlement the company will also have
to set up a new committee to monitor privacy controls at
the company, which will operate separately from the board. The FTC said this would
curtail Mr Zuckerberg’s control over the company he founded. The FTC also used
the opportunity to call again for a new
national data privacy law, something along the lines
of the EU’s GDPR, perhaps. And later that day
Facebook announced that its entanglement with
the FTC was far from over. It is now under an
antitrust investigation, the company said, for being
too dominant in its own market. So which of these should cause
Facebook the most sleepless nights? Well, investors are betting that
the new privacy controls are unlikely to make too much
difference to the way it goes about its business. Facebook shares barely moved
on the news of the settlement. And from what I’m
told, the chances of there being a national
data privacy bill – certainly this side of the
presidential election next year – are receding fast. Democrats and
Republicans can’t agree on how tough it should be. Instead, what I would be
most concerned about if I was Facebook, is
the threat that it should be judged more powerful
than it should be, and be forced to break up,
much like Microsoft was in the early 2000s. It might take years to get
there, and possibly even new legislation, but if I
was an investor that’s what I would be watching right now.

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38 thoughts on “Facebook to pay $5bn to resolve FTC privacy probe | Tech Wash

  1. Big tech and government are working together to steal your private data. This is B.S. to make you want government regulation on big tech.

  2. Fuc* Facebook & Google, both of which posses too much power, people thought Disney has too much power haha wake up America, or should I say 'MERICA!!!!!'

  3. Facebook gave the data of users to Cambridge analytica so they could profile people and use that information to target them with propaganda to produce more favorable ballot votes in 2016. All users are owed much more than what facebook forced to give back.

  4. Yes! Shut down Google Facebook Twitter WhatsApp and the rest. The Internet should never have gone public. At the moment, most Internet users are poorly educated and irresponsible.

    Shut down Amazon and Facebook and Twitter and WhatsApp and Google – to include YouTube.

  5. The global Internet is being used to control the masses — in other words, MIND control / PSYOPS.


  7. Seems like the users could get a massive payoff- there can't be more than…. Oh. 2.41 billion monthly active users.

  8. They paid 5 billion big deal what is more important is forcing Facebook to stop violating user's privacy in the future.

  9. Facebook is a sketchy company, not to mention it’s CEO is a moron when it comes to tech.

    They need to take responsibility for the damage they have caused.

  10. Gov: "We're gonna need 5 BILLION DOLLARS, Zuck."
    Zuck: "Oh, let me fish around in the cushions of my couch… okay, i found it. And also a half smoked joint of GO F YOURSELF I"M RICH Sativa-Douche hybrid"

  11. Facebook knew what they was doing and did it anyway just like they did help the russian kremlin in 2016 election and they keep get away with this ratchet sh*t and not shut down.

  12. I have no dislike of, Facebook. I guess something must be accomplished by Facebook for 'people' to let it grow and let them find why they exist. It's a complicated issue ; so many sharks in the currents today, but how do you appease everyone?
    Five Billion Dollars is not what it was, but it's not chump change. It shows to me that now that the donation is made.
    Facebook, young as they are, has paid dearly to appease those who seem to have Punished them for the crime of being too big.

  13. Cambridge Analytica would like to thank you sheep in the USA and UK for your help. They could not have done it without your need to spew everything about yourself over the internet. As a parting gift, they have left you with Trump as president and Brexit! Until next time, they wish you all good luck …

  14. So let me get this right. They hack people's information on facebook. A fine is imposed and the people who had their information hacked do not get any compensation. Is Skull and Bones running this world?

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