- The final decision on penalties will be taken from the US Department of Justice
- This is the biggest penalty from the Federal Trade Commission on a tech company
- After the Cambridge Analyst Scandal of 2018, FTC inquired about data leaks from Zuckerberg
Jul 13, 2019, 09:16 AM IST
Washington. US regulator (regulators) has fined 5 billion dollars (about Rs 34 thousand crore) on the company after the investigation of Facebook's data protection and privacy violation case. According to media reports, the Federal Trade Commission (FTC), which oversees American business affairs, began investigating the allegations of alleged leaks on Facebook in March 2018. In this, the company was found guilty of defaulting in the privacy and security of the users.
About Facebook's data privacy issues
According to the American newspaper The Wall Street Journal, Facebook was accused of giving data to hundreds of millions of users in 2018 to British consultancy firm Cambridge Analyica. Since then, its data has begun to question the issue of privacy and user security. Mark Zuckerberg had to appear before the American parliament in this case. FTC then started investigating the allegations on Facebook.
According to the reports, Facebook had said that it would pay $ 3-5 billion for the legal agreement only after the investigation started. FTC has also fined the company on these terms to end the investigation of the case. However, the US Justice Department is yet to get its seal.
Seven years ago Google had imposed a fine of 154 million
The penalty imposed on Facebook by the commission is the highest penalty on any tech company. However, this is only 9% of Facebook's 2018 revenue. Earlier, FTC imposed $ 2.25 million (about 154 million rupees) in a matter of privacy on Google in 2012.
Cambridge Analytics Data Leak Controversy
In March last year, Facebook had considered British consultancy firm Cambridge Analyca to leak data of 8.7 million users. Cambridge Analyca used these information during the campaigning of US presidential elections in 2016. Apart from FTC, American Regulator Securities and Exchange Commission and the Department of Justice are also investigating it.
The New York Times also published a report related to the case in 2018. According to the fact that Facebook acknowledged the amount of data users gave to other companies, in fact, they were giving them more information than that.