Face­book: USD 5 bil­li­on fine for Cam­bridge Analytica

As repor­ted by media (NY Times, NZZ), Face­book and the U.S. Federal Tra­de Com­mis­si­on (FTC) via a Buses of approx. USD 5 bil­li­on. agreed. The agree­ment is sub­ject to the appro­val of the Depart­ment of Jus­ti­ce (DOJ). Also part of the agree­ment is appar­ent­ly tigh­ter over­sight of Facebook’s data hand­ling (but not a restric­tion on data processing).

The FTC is pena­li­zing Face­book becau­se Face­book is collec­ting data through Cam­bridge Ana­ly­ti­ca (CA) had admit­ted. CA was an Eng­lish con­sul­ting firm that had sup­por­ted Trump’s elec­tion cam­pai­gn, among other things. In doing so, Face­book had in par­ti­cu­lar vio­la­ted an ear­lier sett­le­ment with the DOJ from 2011.

While the busing is record high, it is set against sales of more out of USD 55 bil­li­on in 2018 and near­ly USD 15 bil­li­on in the first quar­ter of 2019 and cash reser­ves of more than USD 40 bil­li­on. It was the­re­fo­re seen by many as a jud­ged very low. The Face­book share pri­ce rose to an all-time high after the announcement.