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Facebook fine: The company has to pay unprecedented $ 5 billion for privacy violations



The deal authorizes an official complaint from FTC stating that Facebook "uses fraudulent disclosures and settings" that undermine the user's personal information, violating a Facebook-signed Facebook agreement in 2012. Facebook also violated the law, the Federal Trade Commission. in the case of misuse of phone numbers received for account security purposes to target ads to their users. And the company claims to have tricked "tens of millions of users," supposing that the Face Detection feature in the service was not enabled by default when it was actually in place.

"The scale of the $ 5 billion penalty and ease of conduct are unprecedented in FTC history," said Joseph Simons, in a statement. "Relief is designed not only to punish future violations but, more importantly, to change Facebook's entire privacy culture to reduce the likelihood of continuing violations."

In a Facebook publication published shortly after FTC announced on Wednesday, CEO Mark Zuckerberg, "We agreed to pay a historic fine, but more important, we will make some major structural changes in the way we we are working to protect the integrity of people We are already working hard to respond to this responsibility but now we will set a completely new standard for our industry. "

Separately Wednesday, the Committee on Valuables the government and exchanges announced that Facebook has agreed to pay $ 1

00 million to settle charges … to make misleading disclosures about the risk of Facebook user abuse. "

  Democrats and Republicans are united in the destruction of Big Tech
The $ 5 billion fine is nearly 30 times the largest civil sanction of the Federal Trade Commission – $ 168 million, which was imposed on Dish Network DISH DISH ) in 2017 – reflecting the huge scale of Facebook operations as well as the huge amount of self-known mistakes.

In addition to civil punishment, Facebook has also agreed to accept greater surveillance of privacy. practices. Under the deal at FTC, the Facebook board will form a privacy watchdog comprised of independent members who can not be dismissed by Zuckerberg alone. This committee will be entrusted with the appointment of other officials who must periodically and truthfully certify that Facebook is in compliance with the FTC agreement or risk being held personally liable.

"False certificates will be subject to Mr Zuckerberg and [designated compliance officers] under personal liability, including civil and criminal penalties," Simons said in a statement written jointly with the other two Republican Commissioners Christine Wilson and Noa Phillips

FTC also requires regular third-party assessments of Facebook privacy practices not to rely on company materials but on the auditor's own findings.

FTC voted 3-2 to approve the deal, with the two Democrats of the agency opposing because they think the measure is not far enough. In disagreement, Commissioners Rohit Chopra and Rebecca Slaughter think that the fines are too small and that the FTC incorrectly provided Zuckerberg and COO on Facebook Sheryl Sandberg pass

. ignoring the fulfillment of its legal obligations, "Chopra writes. "In my view, it is appropriate to punish employees and directors personally when there is reason to believe that they have had a significant involvement in unlawful behavior or have blindly closed their eyes to their subordinates."

Other prominent technical critics, including Democratic senator Richard Blumentam of Connecticut and Missouri Republican Senator Josh Hawley said a $ 5 billion fine would be a "deal" for Facebook. In a revenue report earlier this year, Facebook said it has committed $ 3 billion to cover the costs of the expected penalty. He reported quarterly $ 15 billion in revenues at the time, and its stock rose after announcing the fee, indicating investors were relieved of the likely outcome.
  100118 About <strong> </strong>  More than a year, Facebook – a once favorite of politicians and a famous example of American ingenuity – rising from crisis to crisis. </p>
<div class= Last October, for example, Facebook revealed that hackers have compromised tens of millions of accounts by using a series of software flaws, culminating in their ability to represent consumers and take on their [thathisplatformhasbeenmistreatedinMyanmarfor"spittingdivisionsandinstigatingviolence"citingaFacebookhumanrightsreviewthatthecompanyhasorderedFacebookatthetimesaiditagreedwiththeindependentreportandthat"wecanandshoulddomore"
Critics have repeatedly pointed out Facebook's role in spreading misinformation, hate speech and conspiracy theories on its platforms. The company was under fire in March, when reports showed that the Facebook search tool recommended anti-vaccination groups and pages to platform users. Facebook has posted a blog post saying it is developing new policies to tackle the issue, but disinformation continues after the launch of the new initiative.
  Blocks of Instagram, # # VaccinesKill & quot; heshta after CNN Business Report
  Equifax exposed 150 million Americans. personal data. Now it will pay up to 700 million dollars
Facebook faced a puzzled question from Congress last week as a key panel of the Justice Commission continued – at the bottom – reviewing the antitrust law of the technology industry. Legislators in other committees have checked Facebook's plans to launch a digital currency, Libra, and many have claimed that Facebook needs to be reformed before attempting to break the global financial system. ” data-src-mini=”//cdn.cnn.com/cnnnext/dam/assets/190717093420-02-david-marcus-facebook-libra-hearings-small-169.jpg” data-src-xsmall=”//cdn.cnn.com/cnnnext/dam/assets/190717093420-02-david-marcus-facebook-libra-hearings-medium-plus-169.jpg” data-src-small=”http://cdn.cnn.com/cnnnext/dam/assets/190717093420-02-david-marcus-facebook-libra-hearings-large-169.jpg” data-src-medium=”//cdn.cnn.com/cnnnext/dam/assets/190717093420-02-david-marcus-facebook-libra-hearings-exlarge-169.jpg” data-src-large=”//cdn.cnn.com/cnnnext/dam/assets/190717093420-02-david-marcus-facebook-libra-hearings-super-169.jpg” data-src-full16x9=”//cdn.cnn.com/cnnnext/dam/assets/190717093420-02-david-marcus-facebook-libra-hearings-full-169.jpg” data-src-mini1x1=”//cdn.cnn.com/cnnnext/dam/assets/190717093420-02-david-marcus-facebook-libra-hearings-small-11.jpg” data-demand-load=”not-loaded” data-eq-pts=”mini: 0, xsmall: 221, small: 308, medium: 461, large: 781″ src=”data:image/gif;base64,R0lGODlhEAAJAJEAAAAAAP///////wAAACH5BAEAAAIALAAAAAAQAAkAAAIKlI+py+0Po5yUFQA7″/>

Even some of the earliest Facebook investors have put questioning the effects of the platform on society as it has become an important communication tool for billions of people. Facebook co-founder Chris Hughes this year publicly rejected the product he helped create by writing a letter to the New York Times claiming that his co-founder, CEO Mark Zuckerberg, has built a monopoly business that stifles competition and insists Regulators

"Technoplast," as some observers call it, is a remarkable breakthrough in recent history – especially for many Democrats who otherwise share close ties in cultural and financial terms with the Silicon Valley. For the technology industry, it represents a dramatic change in attitudes to its role in civil society.

"These questions of trust and privacy are not limited to Google and Facebook," said Todd McKinnon, chief executive officer of Cloud Services, Okta. "If you are a washing machine and have a mobile application that attracts your customers there, you are a technology company – so techlash will affect your laundry." It sounds funny but true. Meanwhile, during the campaign, presidential candidates like Sens. Elizabeth Warren (D-Mass.) And Bernie Sanders (I-Vt.) Criticize the technology giants for being too strong and part of a larger wave of corporate concentration should be beaten back. In March Warren announced a campaign proposal that will stop almost all giants like Amazon, Facebook and Google. Senator Amy Klobucher, another Democrat candidate in 2020, said the technology industry has contributed to a "major monopoly problem" in the United States.

Facebook argues that disintegration will make it harder, not easier, to deal with issues like disinformation and hate speech, and that overregulation risks giving priority to foreign technology companies.

Republicans like Senna. (R-Tenn.) Also called for greater restrictions on technology companies. In a recent speech to the US Chamber of Commerce, Blackburn said it was too early to consider breaking down major technology platforms, but companies like Facebook have shown that they can no longer regulate themselves. will probably deter countries that look at the Silicon Valley.

A number of state attorneys suggest that they could build up with their own investigations or lawsuits against the technology industry. In December, Carl Rassin, Colombian District Attorney General, was the first to file his lawsuit against Facebook in connection with the failure of Cambridge Analyst.

And FTC itself can open further investigations, said Harold Feld, Senior Vice President, Consumer Knowledge Group. A recently created Task Force tasked with reviewing past technology mergers may, for example, try to determine if Facebook's acquisition of WhatsApp or Instagram is harmful to competition.

"It's very clear that the deal is not the end of the game," Feld said.


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