Following an investigation into the recent scandals of Facebook that lasted for a year, the FTC has finally announced a formal fine worth $5 billion along with privacy oversight. However, many are saying that Facebook is getting off too easy, considering that the company’s worth stands at $585 billion.
Nonetheless, the $5 billion fine is actually the largest fine that FTC has ever filed against a tech company up until now. A number of people are commenting on the fine, saying that it is not enough. According to the people, the company deserved to be fine for much more because of its privacy-related violations that were exposed because of the Cambridge Analytica scandal.
Upon the announcement of the fine, the company’s shares surged. According to Senator Ron Wyden, ‘despite Republicans’ promises to hold big tech accountable, the FTC appears to have failed miserably at its best opportunity to do so.’ FTC commissioners, on the other hand, said in a statement, that their order ‘imposes significant new privacy and data security obligations on Facebook.’
Apart from the record-breaking settlement fee, Facebook will also be conducting a privacy review of each and every newly-developed service or product. These reviews must be submitted to Mark Zuckerberg and a third-party assessor every quarter. The social media company will also have to ask for a purpose and use certifications from apps and third-party developers that wish to make use of Facebook user data. Facebook will also be undergoing severe regulation on the use, and creation, of new facial recognition technology.
However, only time will be able to tell if the company is able to curb its amazingly bold disregard for user privacy. Nonetheless, most of the commenters are angry about how little the company has to pay in terms of fine. Sen. Richard Blumenthal has stated that this order by FTC is merely a ‘pin-prick’.