Facebook Admits It Is Expecting a Multibillion-Dollar Fine

An unprecedented FTC penalty is predicted in an investor report.

Mark Zuckerberg after meeting with politicians in Europe.Niall Carson/PA Wire

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Facebook is expecting to be hit with an unprecedented $3-$5 billion federal fine.

The revelation that the company anticipates such a massive fine, the result of a Federal Trade Commission investigation of the company’s privacy practices, came in an investor report released Wednesday. The fine would be the largest ever levied against a tech company by the FTC.

“The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome,” Facebook wrote in the quarterly earnings report where it disclosed the figure.

Facebook has been in negotiations with the FTC for months over the commission’s claims that the social media company violated a 2011 consent decree brokered with the FTC following an earlier investigation, in which the company made agreements not to violate user privacy.

In 2018, Facebook faced renewed criticism over its privacy practices after Cambridge Analytica, a British political research firm, was revealed to have improperly obtained data on tens of millions of its users. Later that year in March, the FTC confirmed it had opened an investigation into Facebook’s data privacy practices.

The company has received significant scrutiny from the public and lawmakers since the scandal came to light. Lawmakers in Congress and in parliaments around the world have hauled in Facebook executives, including CEO Mark Zuckerberg, to testify about how the company treats user data. Many of the legislators have floated new privacy legislation to protect user data.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

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