The fine was approved by 3-2 votes in the house and raised fits of anger in most of the top officials.
The long-standing case of Facebook’s involvement with British political consulting firm Cambridge Analytica in altering the results of Trump’s campaign was now going to settle with a hefty fine slashed to Facebook. The sum of $5billion, which is the largest ever to be paid to FTC till date, could be a joke in the community, however. As Facebook being mischief in data security and violating the 2011 consent decree, it’s still being left free with a small penalty.
US FTC Slashes Facebook With A $5Billion Fine For Cambridge Analytica Scandal
Even after this penalty, Facebook wouldn’t be changing its ways of collecting and harnessing the data from the public. It would continue the same as it knew the results and use it for making billions of dollars via marketing.
The stock analysis goes typical!
While being slashed with such hefty fine could be a negative sign, Facebook share price after the announcement typically rose up by 1%, now standing at $204.87.
Why? Coz this left investors with great relief from FTC’s pressure, which, along with US government had been investigating and preparing to impose a fine that could alter the company and put it under great data security pressure. But what’s announced at last is nothing to the company.
Many of the officials and critics are calling this settlement as a joke! Why? Coz it’s not adequate! Well, that could be astonishing, calling $5B as inadequate, but comparing to what Facebook is earning, that’s a minimal sum for the company. Facebook’s earnings from 2019’s first quarter we’re of $15billion. Now think, what affect this Lil fine could create on the mammoth.