Regulators in the US have reportedly met to discuss levying fines against social media giant Facebook, a punishment that could be sizable in scope and which comes in the wake of privacy violations.
Numerous sources citing The Washington Post said Friday, January 18, that the Federal Trade Commission (FTC) is mulling the fine, which could be set at record levels. That fine would come in tandem with investigations that have stretched into the past year, since a March 2018 announcement that the FTC was looking into the company’s privacy practices. The Post in turn cited three unnamed people, “familiar with the discussions,” in reporting on the most recent developments.
Facebook has drawn scrutiny amid reports that a quiz application was used to gather details on as many as 87 million users, and the data was in turn shared with Cambridge Analytica, a consulting firm based in the UK that has since been shuttered. The consulting firm had retained data on tens of millions of users, but claimed it had not in fact held onto that data. Other data privacy issues have been reported beyond that linkup.
The fine would reportedly be “record-setting” in scope and would eclipse the US$22.5 million paid by Google in 2012.
As has been reported, Facebook had entered into a 2011 consent decree with the FTC, under which the company had pledged to be transparent in the ways it collected and handled (and retained) data.
The government shutdown currently underway has meant that regulators have not as of yet responded to the Friday reports.
In other regulatory news reported just this week concerning Facebook, the antitrust watchdog in Germany – the Federal Cartel Office – aims to stop the social media giant from gathering user data, a determination that comes amid findings that the company has been collecting information from third-party apps, such as WhatsApp and Instagram, without users’ consent.
Elsewhere, if the company is found to have breached the General Data Protection Regulation(GDPR) that has now taken effect in Europe, the company could be fined as much as US$1.6 billion.
Full Content: PYMNTS
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
FCC Votes to Restore Net Neutrality Rules
Apr 25, 2024 by
nhoch@pymnts.com
Apple Rejects Spotify’s Updated App Over In-App Pricing Disclosure
Apr 25, 2024 by
CPI
FCC Set to Reinstate Net Neutrality Rules Today
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI