In earnings call, Facebook discloses $3-5B in fines—and Wall Street yawns
Platform execs told investors it has set aside $3 billion in preparation for a record FTC penalty. Critics say it’s a slap on the wrist, and users and shareholders are shrugging.
Following common wisdom, Facebook got out in front of bad news—$3 billion to $5 billion worth.
Facebook says it is preparing to pay a hefty fine to the Federal Trade Commission for privacy violations stemming from the Cambridge Analytica scandal.
The company made the announcement coinciding with a positive earnings report where the company demonstrated revenue growth and promised to continue its structural reorganization towards privacy. The company says it is setting aside $3 billion in advance of what it assumes will be a penalty as high as $5 billion.
Though the penalty will be the largest ever for data privacy violations, some critics say the amount pales compared with fines levied in other cases.
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Tags: Facebook
