The United States Federal Trade Commission (FTC) has approved a record $5 billion settlement with Facebook over the Cambridge Analytica scandal.
Facebook will be obliged to pay a $5 Billion fine to settle the investigation conducted by the United States Federal Trade Commission (FTC) over the Cambridge Analytica scandal. In April 2018, Facebook revealed that 87 million users have been affected by the Cambridge Analytica case, much more than 50 million users initially thought.
“The Federal Trade Commission has approved a fine of roughly $5 billion against Facebook for mishandling users’ personal information, according to three people briefed on the vote, in what would be a landmark settlement that signals a newly aggressive stance by regulators toward the country’s most powerful technology companies.” reported The New York Times.
The news is not a surprise for the expert, the settlement was anticipated by the media over the past months. The final approval will arrive in the coming weeks from the US Justice Department, that usually approves settlements reached by the FTC.
If approved, it would be the biggest fine assigned by the federal government against a tech firm.
The probe began more than a year ago, the agency found that the way Facebook manages user data violated a 2011 privacy settlement with the FTC. At the time, Facebook was accused of deceiving people about how the social network giant handled their data. The settlement obliged the company to review its privacy practices.
In the Cambridge Analytica privacy scandal, the company allowed to access to the personal data of around 87 million Facebook users without their explicit consent.
In April, Facebook disclosed its first quarter 2019 financial earnings report that revealed the company had set $3 billion aside in anticipation of the settlement with the FTC.
“This fine is a fraction of Facebook’s annual revenue. It won’t make them think twice about their responsibility to protect user data,” said Representative David Cicilline, a Democrat and chair of a congressional antitrust panel.
Recently the UK’s Information Commissioner Office (ICO) has also imposed a £500,000 fine on Facebook over the Cambridge Analytica scandal.
Pierluigi Paganini is member of the ENISA (European Union Agency for Network and Information Security) Threat Landscape Stakeholder Group and Cyber G7 Group, he is also a Security Evangelist, Security Analyst and Freelance Writer.
Editor-in-Chief at "Cyber Defense Magazine", Pierluigi is a cyber security expert with over 20 years experience in the field, he is Certified Ethical Hacker at EC Council in London. The passion for writing and a strong belief that security is founded on sharing and awareness led Pierluigi to find the security blog "Security Affairs" recently named a Top National Security Resource for US.
Pierluigi is a member of the "The Hacker News" team and he is a writer for some major publications in the field such as Cyber War Zone, ICTTF, Infosec Island, Infosec Institute, The Hacker News Magazine and for many other Security magazines.
Author of the Books "The Deep Dark Web" and “Digital Virtual Currency and Bitcoin”.