The US FTC, or the Federal Trade Commission imposed a fine of $5 billion (approximately 34,280 crore rupees) for privacy issues on the social media giant, Facebook. In the investigation, it was found that the company committed privacy infringement of its users by mishandling the data and even violated the agreement signed in the year 2011 between the social media company and its regulator.
The Wall Street Journal told that the US Federal Trade Commission will also impose some new restrictions on the different ways that how the company should treat and handle the privacy of its users. The Journal also told that the voting of the agency was in accordance with the party lines where on one hand, it was voted in favor by three Republicans and on the other hand, was vehemently opposed by two Democrats.
This fine amount of massive $5 billion is the highest penalty that is ever paid to the agency, FTC. Because of this issue, Facebook has in the recent past faced a lot of criticisms from the people all around the globe. Even though the settlement deed with the FTC has reached a conclusion and solved a major problem removing the biggest obstacle but still the social media company has very high chances in the upcoming times to witness antitrust issues. It can also get in trouble of money laundering when the matter comes to Libra, the planned cryptocurrency.
Claims have also been made to make the top officials and even the Founder, Mark Zukerberg, to be held personally liable for the user’s privacy infringement. However, the settlement is in the process by the Justice Department’s Civil Division and will be finalized soon. Any agreement would certainly have a bad implication on the Company’s future and will Facebook under oversight for at least 20 years.