It was reported that Facebook will pay $ 5 billion fine at the suit of the Federal Trade Commission (FTC) and another $ 100 million at the suit of the US Securities and Exchange Commission (SEC) for violating privacy of users ’personal data.For those who have already forgotten, it is worth reminding that these fines are the outcomes of a scandal with Cambridge Analytica.
The lack of control by the social network allowed quiz application illegally gather information about 87 million Facebook users that non-existing now British consulting company Cambridge Analytica used for micro-targeted political advertising. This company has already worked with Donald Trump campaign headquarters and claimed that is had contributed to his victory.
A fine of five billion dollars against Facebook has become the largest in the history of the FTC. By the way, the amount was published last week and it corresponds to the upper limit of the preliminary assessment made by Facebook and reflected in the report for the first quarter of 2019. But the fact that this particular issue with Cambridge Analytica’s data leakage is settled (if it can be said so, considering the obligation imposed by the agreement on Mark Zuckerberg to monitor compliance amid the threat of criminal liability), does not mean that the FTC no longer has claims to Facebook.
Simultaneously with the publication of the report for the second quarter of 2019, Facebook announced that right now the FTC is investigating the company’s activities in connection with allegations of antitrust laws violation. In a statement, Facebook noted that it received official notification last month.
“The online services market in general, and our company in particular, became objects of increased attention from regulatory authorities in the past quarter. In June 2019, the FTC announced that it was launching an antitrust investigation on the activities of our company. In addition, in July 2019, the US Department of Justice announced an anti-monopoly investigation of leading online platforms”, – the report said.
Last month, the Wall Street Journalreported that the FTC had been instructed to conduct antitrust investigations on Facebook and Amazon, and the US Department of Justice targeted Google. Facebook says they received a notification last month, so most likely later this week, when Amazon and Alphabet (Google parental company) will publish their reports, public will receive confirmation of two more antitrust investigations against technology companies in the United States.
Returning to Facebook’s financial report, despite all the scandals, data leaks, persistent security problems and problems with regulators, Mark Zuckerberg’s company is doing very well.