According to The Wall Street JournalVoting 2-3 on the party line was carried out by the commissioners of the Federal Trade Commission by the Republican majority and will be transferred to the Civil Division of the Ministry of Justice to be completed.
Paying $ 5 billion in compensation seems like a big sum, But Facebook has already allocated $ 3 billion to cover the cost of the settlement The company is likely to make up this figure in less than a quarter of revenue (the company's revenue for the last quarter was about $ 15 billion). In fact, Facebook Said in April it expected to pay up to $ 5 billion to finish the government's investigation.
The settlement will also include government restrictions on how Facebook treats user privacy, according to the magazine.
We have arrived FTC And Facebook to comment This story will be updated when we hear again.
Eventually, the party split that disrupted the settlement collapsed with the Republican members of the committee who overcame democratic concerns for greater control of the social media giant.
Lawmakers have consistently called for greater regulatory oversight on Facebook – and even a legislative push to dismantle the company – Since the company's mismanagement of private data has been revealed to millions of Facebook users During the run-up to the 2016 presidential election, which was incorrectly collected by Cambridge Analytica.
Specifically, the Federal Trade Commission was considering whether the data breach violates the 2012 Consent Decree, which has seen Facebook commit to protecting better privacy of user data.
Facebook problems are not finished Cambridge Analytics . The company has been since On the receiving end From Number of expose About the use and abuse of information their customers come and calls to break the big technology companies grew louder.
Settlement may also be a way for the company to buy its way out of the most stringent control because it faces probes in its business practices that may be uncooperative and queries in launching new coded currencies – Libra – which is described as an electronic currency for Facebook users who are largely knowledgeable about government monetary policy.
Potential penalties proposed by legislators have been reported to the FTC to include the possibility of lifting privacy controls to the company's board of directors and possibly deleting tracking data; restricting some information collection; limiting ad targeting; and restricting the flow of user data across Facebook business units.