The US Federal Trade Commission (FTC) has fined Facebook $5 billion (€4.5 billion). The company is receiving this fine because of privacy scandals. Never before has the FTC issued such a high fine. Facebook must start improving user privacy from the commission. Among other things, an independent privacy commission will be set up for this purpose.
Among other things, the FTC investigated the Cambridge Analytica data scandal. Data of 87 million users then fell into the wrong hands. The commission believes that Facebook deceived tens of millions of people with misleading disclosures and settings. As a result, users did not know how their data was being used. FTC Chairman Joe Simons announced that the sanction is not only intended as punishment, but also to change Facebook's entire privacy culture. The US stock market watchdog SEC also fined Facebook: it amounts to 90 million euros. According to the SEC, Facebook misled investors about the financial risks of the privacy scandals.
This week, the U.S. Department of Justice announced a major investigation into the market power of large tech companies. Which companies are involved, the Openbaar Ministerie Department has not yet announced. Presumably they include Amazon, Apple, Facebook, Google and its parent company Alphabet, and Microsoft. "We are investigating whether and how leading online platforms have achieved market power and engaged in practices that have restricted competition, impeded innovation or otherwise harmed consumers," the Justice Department said.
