How we know: In its quarterly financial results, Facebook said it had set aside money for a one-time payment of $3 billion to $5 billion related to the FTC’s inquiry.

The context: The FTC is investigating Facebook over several issues, including the Cambridge Analytica scandal, and claims it broke a 2011 privacy consent ruling. The two parties have been in talks for months but it’s not clear when we can expect any form of agreement to be reached.

All a matter of perspective: To most of us (and to the FTC), $3-5 billion is a whopping sum of money. But for Facebook, which earns $56 billion in revenue every year, it can potentially just be written off as a cost of doing business.

An alternative: If US lawmakers really want to force Facebook to change its practices, they could look at new privacy or data legislation, or even breaking the company up.

This story first appeared in our daily newsletter, The Download. Sign up here to get your dose of the latest must-read news from the world of emerging tech.

Share

Link

TaggedFacebook, Privacy

Author

Charlotte JeeI write The Download, the only newsletter in tech you need to read every day. Before joining MIT Technology Review I was editor of Techworld. Prior to that I was a reporter covering the intersection of politics, the public sector and technology. In my spare time I run a venture called Jeneo aimed at making tech events more inclusive. I regularly do public speaking and crop up on the BBC from time to time. Sign up for The Download here.

ImageAssociated Press