Facebook to Be Fined $5 Billion (Cambridge Analytica)

[Dimitri]

F.T.C. Approves Facebook Fine of About $5 Billion

The Federal Trade Commission has approved a fine of roughly $5 billion against Facebook for mishandling users’ personal information, according to three people briefed on the vote, in what would be a landmark settlement that signals a newly aggressive stance by regulators toward the country’s most powerful technology companies

[nytimes.com...]

[Selen]

Will the fine be redistributed to the affected users?

[Dimitri]

Is that $57 / users ? Facebook can pay it in Libra currency :)

[not2easy]

The amount of the fine is not yet set in stone, but it is expected to be roughly $5 billion because of their prior consent decree. MZ says they were told to expect a $5B fine back in April so they set aside some of the money starting back then. Since they reported 1st Qtr profits of $15B, this fine would be roughly one month's profits.

[tangor]

With FB's current portfolio this is a pretty light slap on the wrist... and (unless I missed something) no acknowledgement of guilt on their part. In the long run this is a cost of doing business thing, nothing more.

[Dimitri]

this fine would be roughly one month's profits.

Yes, 8.3% decrease of profits, in a sector where investors expect 20 or 30% growth each year, non stop...

Also, this is "one" fine, but Facebook is accumulating them these days ...

[engine]

The U.S. Justice Department has yet to review this and eventually to approve it.

Based upon the size of the company profits and the fine, it's quite low.

[iamlost]

Gotta love it.

FaceBook set aside 5-billion. The fine is 5-billion. All nicely agreed beforehand.
On the announcement FBs share price jumped up. Apparently investors expected the fine or more likely restrictions be worse. Restrictions? What restrictions?
The FTC appears to have been unanimous on the fine itself, the split looks to have been that the 2-Democrats disagreed with the 3-Republicans over allowing FB to continue business as usual.
30% of 1-quarter's profit is simply a cost of doing business...and FB is right back at business as usual.

[Dimitri]

Facebook and Internet giants will finish by spending, in fines, what they've saved with their tax optimizations schemes :)... hum... but I guess that fines are deductible from their taxable profits ... so resulting in paying less taxes ... hum ...