Facebook faces a $ 5 billion fine before the FTC
Facebook has reached an agreement with the Federal Trade Commission for repeated violations of privacy, this after a long investigation into these errors. The FTC voted 3-2 in favor of the deal this week, of approximately $ 5 billion, which has now been transferred to the civil division of the Department of Justice for review. However, it is noted that it is not yet clear how long this process will last.
The final vote in the FTC was established with three Republican commissioners voting in favor of the agreement and two Democratic commissioners voting against. Apart from the fine, it is not clear what the agreement presented by Facebook will require. In April, representatives of the social network founded by Mark Zuckerberg mentioned that they were reserving $ 3 billion waiting for a possible fine from the FTC.
In this sense, the stock price was not affected by this coup as it had reserved these millions of last year's profits to address the impending problem.
For its part, concerns against data security and Facebook's privacy policies continue to be rampant even in its new cryptographic project (Libra). However, stock prices have continued to rise, as investors still seem elated by the announcement.
In your quarterly report more
recent earnings, Facebook, reported 15.1 billion dollars in sales,
26% more than the previous year. At that time, 3 billion represented
about 6 percent of the cash and marketable securities that Facebook
I had available.
In case the agreement is approved, the fine would be the largest in the history of the FTC. The current record is $ 22.5 million against Google in 2012.
However, Libra is likely facing difficult times for some obvious reasons. First, it attracts natural pessimists of the current financial system, who believe that projects such as Libra would interrupt the financial system.
On the other hand, regulatory concerns around Libra are plentiful, as it is aimed directly at reducing the role of central banks, as well as raising security concerns with money laundering.
In addition, Facebook has recently received accusations of privacy scandals and user data. For a cryptocurrency project that promises to provide cross border payment services, privacy and user data issues are of great interest.
For now, we have to wait to see if Facebook will finally succeed with its plans to launch the cryptocurrency.
Venezuelan, student of the last semester of Social Communication. Attracted by the new technologies and the development they offer to humanity.
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