Facebook faces record multi-billion-dollar fine
WASHINGTON: Facebook Inc is in talks with United States regulators over alleged privacy violations that could force the socialmedia giant to pay billions of dollars in a record-breaking settlement, according to two people familiar with the matter.
The US Federal Trade Commission’s (FTC) consumer-protection staff and the company are in discussions that could lead to a resolution of the agency’s investigation into whether Facebook violated a 2011 settlement with the FTC, said the people.
No settlement proposal had been presented to the agency’s five commissioners, according to one of the people.
The commissioners have the final say over any agreement reached with Facebook.
It is unclear whether the two sides have discussed details of how much Facebook would have to pay to resolve the case.
The Washington Post reported earlier that they were in discussions about a multi-billion-dollar fine.
The FTC investigation, opened nearly a year ago, focuses on whether Facebook failed to honour previous privacy commitments when the political consulting firm Cambridge Analytica gained access to information about millions of users.
Facebook’s mishaps have since increased, with disclosure of a security breach affecting 50 million accounts and news that some of the world’s biggest technology companies were given more access to users’ data than had been disclosed.
The FTC can fine Facebook about US$40,000 (RM163,500) per violation and it is under pressure from lawmakers and privacy advocates to impose a stiff punishment against the company.