RT
Facebook has told investors it's probably on the hook for up to $5 billion in fines - a record-high penalty for a tech company in the US - as a Federal Trade Commission probe continues into its violations of users' privacy.
Citing "a $3.0 billion legal expense accrued in the first quarter of 2019 related to the ongoing US FTC matter" in its quarterly financial statement, Facebook later admits the penalty might be higher: "We estimate that the range of loss in this matter is $3.0 billion to $5.0 billion," the statement reads, adding that "the matter remains unresolved, and there can be no assurance as to the timing or terms of any outcome."
The FTC is investigating Facebook on charges it repeatedly and catastrophically failed to safeguard users' data, from allowing Cambridge Analytica to scrape 85 million users' information to permitting corporations like Microsoft and Netflix to access users' messages and other personal info as part of secret data sharing partnerships. Investigators have reportedly found plentiful evidence that Facebook violated a 2011 FTC agreement requiring it to get permission from users before sharing their data with third parties - and to notify the FTC when third parties have misused this data.
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See also: 5 social networks that can be used instead of manipulative Facebook
Facebook has told investors it's probably on the hook for up to $5 billion in fines - a record-high penalty for a tech company in the US - as a Federal Trade Commission probe continues into its violations of users' privacy.
Citing "a $3.0 billion legal expense accrued in the first quarter of 2019 related to the ongoing US FTC matter" in its quarterly financial statement, Facebook later admits the penalty might be higher: "We estimate that the range of loss in this matter is $3.0 billion to $5.0 billion," the statement reads, adding that "the matter remains unresolved, and there can be no assurance as to the timing or terms of any outcome."
The FTC is investigating Facebook on charges it repeatedly and catastrophically failed to safeguard users' data, from allowing Cambridge Analytica to scrape 85 million users' information to permitting corporations like Microsoft and Netflix to access users' messages and other personal info as part of secret data sharing partnerships. Investigators have reportedly found plentiful evidence that Facebook violated a 2011 FTC agreement requiring it to get permission from users before sharing their data with third parties - and to notify the FTC when third parties have misused this data.
Read more
See also: 5 social networks that can be used instead of manipulative Facebook
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