According to The Wall Street Journal, The Federal Trade Commission is expected to hit Facebook with a record-setting $5 billion fine for its alleged privacy mishaps.
The FTC started investigating Facebook last year after revelations surfaced that Cambridge Analytica, a UK political consultancy, accessed data from up to 87 million Facebook users without their permission.
The Republican majority favored the settlement while as several advocacy groups and lawmakers expressed their displeasure with the FTC on Friday. Some said the reported settlement would let Facebook off the hook too easily. Elizabeth Warren Democratic presidential candidate called the FTC settlement “a victory for Facebook”.
In the first 15 minutes after the settlement was reported, Facebook’s market value went up by more than $5 billion, moreover, Facebook reported $15.08 billion in sales in the first quarter and last year facebook made $5 billion in profits in just the first three months so it won’t have much effect on them.
The settlement, which still has to be finalized by the US Justice Department’s civil division, would be larger than the record-setting $22.5 million the FTC imposed on Google in 2012. The FTC and Facebook declined to comment on the report.