FTC Agree On Penalizing FB, How Much Is The Question – Market News Store

FTC Agree On Penalizing FB, How Much Is The Question

The Federal Trade Commission and its five commissioners had decided several months ago that they will levy a hefty penalty on social media giant Facebook for mishandling users’ data and other misdemeanors that were part of news media throughout past couple of years. They wanted to make an example of Facebook to showcase the agency’s power to curb errant tech firms that seem to have little consideration about government regulations. It appears that the politicians are now divided on how much penalty should be levied and justification of the amount that is finalized as fine.

This split among members in accepting a common amount that will be declared as fine to be paid by Facebook is leading to the delay. According to two people that are aware of the inner workings of the committee, the members are also not able to come to any consensus about degree to which Facebook Chief Mark Zuckerberg can be personally held liable for violating agreement of 2011. Facebook has put up a strong protest stating that Mr. Zuckerberg should not be personally held responsible for the actions of his 35000 employees and the decisions they take about work ethics.

These talks could either break down or go forward and get concluded within a few days after which an announcement will be made. The investigation of Facebook by FTC is based on interviews with less than a dozen people. Republic chairman of the committee Joseph J. Simons is likely to have acceptance of other two commissioners from Republic party could help to seal the approval but since this decision will be based on party lines if the other two do not agree the decision is still in abeyance. Till date the largest fine imposed by FTC was on Google in 2012 amounting to $22 million for misleading users about tracking tools.

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