After weeks of reports that the company was working to settle with the Federal Trade Commission (FTC) over its privacy practices, the two parties have finally come to an agreement. The Wall Street Journal reports that commissioners voted to approve a $5 billion settlement — something Facebook had already accounted for for the social network over its “privacy missteps,” with three Republicans voting to approve the deal and two Democrats opposed.
Facebook was aware of a fine of this magnitude potentially coming down the pike for some time, and braced for a hit between $3 billion and $5 billion. The approval vote which reportedly split down party lines, with three Republicans voting in favor and two Democrats against was on the higher end of the expected spectrum.
Part of the settlement, which still needs approval by the Justice Department, is expected to curtail Facebook’s data policies, though the specific details are not currently known. According to reporting from the New York Times, however, “none of the conditions in the settlement will restrict Facebook’s ability to collect and share data with third parties.” This, allegedly, was the source of Democrats’ decision not to pursue this specific course of action.
“Given Facebook’s repeated privacy violations, it is clear that fundamental structural reforms are required. With the FTC either unable or unwilling to put in place reasonable guardrails to ensure that user privacy and data are protected, it’s time for Congress to act,” Sen. Mark Warner wrote in a statement, seemingly confirming that reporting.
“Despite Republicans’ promises to hold big tech accountable, the FTC appears to have failed miserably at its best opportunity to do so,” Sen. Ron Wyden concurred. “No level of corporate fine can replace the necessity to hold Mark Zuckerberg personally responsible for the flagrant, repeated violations of Americans’ privacy. That said, this reported fine is a mosquito bite to a corporation the size of Facebook. And I fear it will let Facebook off the hook for more recent abuses of Americans’ data that may not have been factored into this inadequate settlement.”
Following news of the FTC’s vote, Facebook stocks surged in after-hours trading. If that sounds unfair and utterly backwards, that’s because it is.
