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

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.

$500,000 MATCHING GIFT

In 2014, before Donald Trump announced his run for president, we knew we had to do something different to address the fundamental challenge facing journalism: how hard-hitting reporting that can hold the powerful accountable can survive as the bottom falls out of the news business.

Being a nonprofit, we started planning The Moment for Mother Jones: A special campaign to raise $25 million for key investments to make Mother Jones the strongest watchdog it can be. Five years later, readers have stepped up and contributed an astonishing $23 million in gifts and future pledges. This is an incredible statement from the Mother Jones community in the face of the huge threats—both economic and political—against the free press.

Read more about The Moment and see what we've been able to accomplish thanks to readers' incredible generosity so far, and please join them today. Your gift will be matched dollar for dollar, up to $500,000 total, during this critical moment for journalism.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.