22 votes

US FTC approves Facebook fine of about $5 billion

6 comments

  1. patience_limited
    Link
    Better explanation here, which at least mentions that Facebook violated a prior 2012 consent decree concerning data privacy, and explicitly indicates that the fine is for the Cambridge Analytica...

    Better explanation here, which at least mentions that Facebook violated a prior 2012 consent decree concerning data privacy, and explicitly indicates that the fine is for the Cambridge Analytica data disclosures involved in the 2016 malvertising.

    It's still a trivial bite on the revenue Facebook has achieved.

    9 votes
  2. [4]
    Shahriar
    Link
    Why is the after-hours stock value rising after this vote was made?

    Why is the after-hours stock value rising after this vote was made?

    6 votes
    1. [2]
      gpl
      Link Parent
      I think because of this: Before negotiations were finalized, some people thought that the FTC would more forcefully regulate how Facebook uses user data, up to and including having an oversight...

      I think because of this:

      In addition to the fine, Facebook agreed to more comprehensive oversight of how it handles user data, according to the people. But none of the conditions in the settlement will restrict Facebook’s ability to collect and share data with third parties. And that decision appeared to split the five-member commission. The two Democrats who voted against the deal sought stricter limits on the company, the people said.

      Before negotiations were finalized, some people thought that the FTC would more forcefully regulate how Facebook uses user data, up to and including having an oversight board with some serious teeth. Since they voted against that, this outcome can be seen as the lesser of outcomes despite the huge fine.

      14 votes
      1. Shahriar
        Link Parent
        Huh, I must have missed that in the article when I read it, thanks. Was initially wondering why those two democrats voted against, but that paragraph also mentions it.

        Huh, I must have missed that in the article when I read it, thanks. Was initially wondering why those two democrats voted against, but that paragraph also mentions it.

        2 votes
    2. nic
      Link Parent
      We all expected this. It could have been worse. Facebook said they expected a $5b fine. The market priced in the possibility that the fine could have been $0b all the way through to n times $5b...

      We all expected this.

      It could have been worse.

      Facebook said they expected a $5b fine. The market priced in the possibility that the fine could have been $0b all the way through to n times $5b where n is completely unknown. The market also priced in the possibility that the company might have additional restrictions placed on it or the very small possibility that facebook might get broken up.

      It's the old adage of "buy the rumor, sell the news." You really don't have an edge if you are trading on public information.

      1 vote
  3. annadane
    Link
    Dear Zuck, I fully support the importance of finding ways to make a free service possible, ie, finding some ways of generating revenue. That being said if all FB is ever known for is endless...

    Dear Zuck, I fully support the importance of finding ways to make a free service possible, ie, finding some ways of generating revenue. That being said if all FB is ever known for is endless scandals, maybe it's time to revisit your notion of how much FB cares about your privacy

    3 votes