Business

Facebook faces a record $ 5 billion penalty

Facebook announced that it could face a fine of up to $ 5 billion by the US Federal Trade Commission (FTC) for violating privacy rights.

Photo: Indogame

On Wednesday, Facebook announced that it could face a fine of up to $ 5 billion by the US Federal Trade Commission (FTC) for violating privacy rights. This is a record high penalty against a technology company, and it is also a sign that the US is ready to punish large technology companies.
The company that owns the social networking site Facebook has published this information along with the latest quarterly financial information. Facebook said that the one-time penalty could range from $ 3 billion to $ 5 billion based on the FTC’s findings. Facebook stressed that the issue has not been resolved and that there is no guarantee of the deadline or terms of the final fine.
For months, Facebook has constantly had dialogues with regulators about penalties and statements about the possibility of a company violating its privacy clause in 2011. In the same year, this social network has introduced many measures to protect the privacy of users after the results of the investigation show that the way Facebook manages personal information has harmed consumers.
Last year, the FTC opened an investigation after Facebook faced a wave of criticism. This time, the alleged company did not protect users’ personal information from being abused by Cambridge Analytica, a political consulting firm that built voter profiles for the US President Donald. Trump. Facebook also faces a personal data breach problem of nearly 50 million users.
The imposition of very high fines on Facebook will contradict the image of the United States for so long in not restricting the power of large technology companies. For many years, US managers have been criticizing that they allow Silicon Valley companies to grow uncontrollably while European regulators are extremely strict with US technology companies. . Europe used to pay Google $ 5.1 billion for abusing its power in the mobile phone market.
For President Trump’s administration, punishing Facebook will have a very important role. Although President Trump has reduced many corporate management measures, he and many other politicians in Washington have also called for tightening management of technology companies.
Massachusetts Senator, Ms. Elizabeth Warren, has called for a split of Amazon, Google and Facebook. President Trump voiced warnings about the dominance of the business and their control over speeches and information sharing.
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