Anticipated for months, the Federal Trade Commission (FTC) has voted today to Facebook impose a record $ 5 billion fine for alleged violation of a 2011 consent decree requiring the company to better protect the privacy of users. This is what was reported in the Wall Street Journal The New York Times and the AP. According to the New York Times report, the commission voted 3 to 2, with the two Democrats voting against.
Fines and supervision. In addition to this fine, "Facebook has agreed to more fully monitor how it processes user data. . . But none of the terms of the deal will limit Facebook's ability to collect and share data with third parties, "the Times says. "And this decision seemed to split the five-member commission. The two Democrats who voted against the agreement called for stricter limits on society, said the people [familiar with the proceeding]. "
Triggered by the scandal Cambridge Analytica the FTC investigated more on Facebook a year before deciding to impose the record fine.And the heavy fine could well indicate a new, more aggressive, attitude of federal law enforcement authorities to technology firms, in the absence of federal privacy legislation.
The largest fine previously imposed by the FTC was a fine of about 22 million dollars against Google in 2012. to bypass the non-third party cookie default settings on the mobile Safari browser ( "Cookiegate").
They saw it coming in. Facebook was waiting for fine and shareholders prepared when publishing its results quarterly accounts. ciété has also set aside $ 5 billion in advance to pay it. As a result, the penalty has probably already been taken into account in Facebook's share price. But even $ 5 billion does not matter much to a company whose turnover exceeded $ 55 billion in 2018.
For its part, Google has received several fines of several billion dollars. dollars in Europe for various antitrust violations. Despite this, Google came out almost completely unscathed. Similarly, it is unlikely that this fine will have a significant impact on Facebook.
As a result of Cambridge Analytica and other data-related controversies, Facebook rotated for to more strictly enact privacy and regulation .
Why we should care. Before we can assess the impact of this regulation on marketing, we need to know the official conditions of this agreement. However, as the New York Times story suggests, none of Facebook's major advertising features appear to have been compromised.
About the Author
Greg Sterling is a collaborative editor at Search Engine Land. He writes a personal blog, Screenwerk on the links between digital media and consumer behavior in the real world. He is also Vice President of Strategy and Knowledge for the Local Search Association. Follow him on Twitter or find him at the address Google+ .