Facebook: hit with record 5 billion dollar fine by FTC
(CercleFinance.com) - After months of negotiations, Facebook has agreed to pay a record 5 billion dollars penalty to the FTC in order to resolve allegations around the Cambridge Analytica scandal last year.
Under the settlement deal, Facebook will have to submit itself to new restrictions and a modified corporate structure that will hold the company accountable for the decisions it makes about its users' privacy, the Federal Trade Commission said.
The FTC's investigation was initiated after the events around Cambridge Analytica last year.
Facebook said it also resolved an ongoing investigation by the Securities and Exchange Commission, which will result in another 100 million dollar penalty.
The SEC alleged that Facebook should have had better processes to ensure disclosure to investors of data abuse, like what occurred with Cambridge Analytica.
The New York-listed Facebook share opened down 1.6% on Wednesday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Under the settlement deal, Facebook will have to submit itself to new restrictions and a modified corporate structure that will hold the company accountable for the decisions it makes about its users' privacy, the Federal Trade Commission said.
The FTC's investigation was initiated after the events around Cambridge Analytica last year.
Facebook said it also resolved an ongoing investigation by the Securities and Exchange Commission, which will result in another 100 million dollar penalty.
The SEC alleged that Facebook should have had better processes to ensure disclosure to investors of data abuse, like what occurred with Cambridge Analytica.
The New York-listed Facebook share opened down 1.6% on Wednesday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.