Facebook will pay up to $ 500 billion in fines for privacy breaches

by Alex Haney

Facebook has been surveyed by the Federal Trade Commission (FTC), who oversees and monitors fair trade in the United States shortly after disclosing information about the issue of fraudulent use of 50 million users of data to Cambridge Analytica . Meanwhile, among the financial results of the first quarter of 2019 announced on April 24, 2019 , Facebook paid a fine of $ 3 billion to $ 5 billion (approximately ¥ 340 billion ~ ¥ 560 billion) from the FTC for privacy infringement matters. It is clear that there is a possibility of being ordered.

Facebook expects to pay FTC up to $ 5 billion (!!!) for privacy violations
https://mashable.com/article/facebook-5-billion-dollar-fine-ftc/

In the first quarter of 2019, Facebook has announced that it has recorded a $ 3 billion reserve. It also reveals that for investors, 'the fine that the FTC may be required to pay for privacy breaches' is around $ 3 billion to $ 5 billion. So far, media such as The Washington Post have reported that 'FTC is likely to impose record fines on Facebook's privacy breach,' which is likely to happen.

This is the first time a high-tech company has been paid so many fines from the FTC, but non-technology companies have been fined more than ever.

The fact that they can be fined up to $ 5 billion is a shameful thing for a company, but 'it may not be as bad as reported,' Mashable of the foreign media writes. According to Facebook's first quarter 2019 results, Facebook has recorded sales of more than $ 15 billion over analysts' forecasts, a 26% increase over the same period last year. In addition, the number of daily active users has also reached the figure of 39 million. In addition, after Facebook announced the first quarter of 2019, Facebook's stock temporarily rose by more than 10%. With that in mind, 'Facebook seems to be hardly bothered by the news of the $ 5 billion fine,' Mashable said.

Meanwhile $ FB now up more than 10% pic.twitter.com/CQzmprd376

— Karissa Bell (@karissabe) April 24, 2019

However, it has also become clear that Dave Wehner, CFO on Facebook, said in a conference call with investors that 'the amount of the fine remains uncertain.'

FTC in addition to fine there is a possibility to impose new regulations against Facebook, the Facebook to the other the Securities and Exchange Commission investigation and a criminal investigation by the (SEC), it has also received such inquiries from the European regulatory authorities, We will still receive investigations on privacy violations.