More Cambridge Analytica Fallout From U.S. Costs Facebook $5B
One would think that a $5 billion fine would be pretty severe punishment. In fact, that record-setting fine was doled out by the Federal Trade Commission along with other penalties to Facebook. But some people don’t think it was nearly enough, considering the amount of data that Facebook had hacked from its supposedly secure platform.
Some critics have claimed the amount of the fine is not significant enough to punish a company like Facebook.
Businessinsider.com laid out the details: violations of the company’s prior-consent decree — including privacy concerns and the Cambridge Analytica scandal where millions of users’ data profiles were used without their consent or under deceptive circumstances, was the basis for the hefty consequences.
And now the U.S. Department of Justice is begining an antitrust investigation into other big tech platforms. New legislation is coming that will also put some limits on these companies freedom to do as they please.
Businessinsider.com also reports other entities will clearly pay attention and may even change their behavior. The agreement’s additional and stringent requirements for certification and oversight of the company’s comprehensive privacy program also includes a potential impact on company executives and sizeable fines.
Fastcompany.com reports that amid scandal after scandal, Facebook’s reputation may have taken a beating, but any stigma has yet to drive away the brands that pay its bills. For the three months ending on June 30, the company reported $16.9 billion in revenue, which is up 28% over a year ago. Ninety-eight percent of that came from advertising sales, and 94% of those ads were displayed on the mobile incarnations of Facebook and Instagram.
And that aint chump change, no matter which side of this issue you look at. The fine or the enormous amount of money Facebook continues to rake in daily. In addition, CEO Mark Zuckerberg has yet to pay any personal fines.
read a British perspective at telegraph.co.uk