FTC has announced on Wednesday that Facebook Inc. has agreed to settle significant allegations on mishandling user privacy and pay $5 billion. Read more at www.reuters.com
As part of the settlement, Facebook has agreed on creating a board committee specifically for user privacy and will agree to new executive certifications that users’ privacy is being properly protected. Also, Mark Zuckerberg will have to certify every three months that the company is properly safeguarding user privacy.
This settlement comes in middle of growing concern among U.S. policymakers about the privacy of online users and have sparked calls for new legal protections in Congress.
This fine will mark the largest civil penalty ever paid to the FTC.
While the deal resolves a major regulatory headache for Facebook, but still it faces further potential antitrust probes as the FTC and Justice Department undertake a wide-ranging review of competition among the biggest U.S. tech companies.
Facebook is also facing public criticism for its planned crypto-currency Libra over concerns about privacy and money laundering.