The Facebook social network is the subject of a FTC ( Federal Trade Commission ) investigation regarding the fact that Facebook has broken the law in what user privacy is concerned.
The fine Facebook risks may go as up to as a third of Facebook’s trimester revenue, estimated at $15 billion for Q1-2019 and it would be record fine given by the FTC, the authority that is specialized in consumer protection and overseeing good business practices between companies that are doing business in the United States of America.
According to information that has been revealed in the last Facebook investors report, Facebook is the subject of an investigation regarding the breaking of a “consent decree” which dates back to the year 2011, which requires Facebook to inform and get consent from users for using personal data that surpasses the limits allowed by the Privacy Settings of Facebook accounts.
Facebook has allegedly broke these privacy conditions and apparently Facebook gave access to an apps developers – Cambridge Analytics – to the personal data of millions of users. Considering that the investigation shows that the security breach has affected more than 50 million users, a class action law suit against Facebook would cripple the company.
Right now Facebook is accessed by at least 1.5 billion people every day and 2.38 billion are using Facebook at least once every month. Facebook’s revenue has increased in the last quarter to $15,1 billion, surpassing previous expectations. Even so, Facebook has invested approximately $11,76 billion in content, improving security, implementing A.I. filters on th the entire platform and other important features.