Privacy Experts: Facebook’s $5B Fine Unlikely to Do Much
The United States Federal Trade Commission (FTC) has fined Facebook a record $5 billion for violating the privacy of users in the context of the Cambridge Analytica scandal, which saw Cambridge Analytica harvest the personal data of millions of Facebook users without their consent. But even though the fine is 200 times higher than the largest fine previously issued by the FTC, privacy advocates believe the measure will not prompt Facebook to improve their data protection practices.
Chair of the House antitrust subcommittee Rep. David Cicilline (D-R.I.) stated that the fine “is a fraction of Facebook’s annual revenue,” and “won’t make them think twice about their responsibility to protect user data.” It is striking that Facebook’s stock price actually increased by almost 2% when the $5 billion fine was announced. This shows that investors are far from concerned about the impact the measure will have on the company.