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Facebook will pay a record $5 billion in U.S. fines over privacy, faces anti-trust probe

WASHINGTON (Reuters) – Facebook Inc will pay a record $5 billion penalty to resolve a government probe into its privacy practices, and the impetus it will give to the safeguarding of the user information, the Federal Trade Commission, and the social media company said on Wednesday.

After the stock market closed, Facebook is mentioned as a part of its earnings report, the COMMISSION told us last month that the commission is an independent anti-trust investigation of the company. The FTC, which earlier in the day issued a statement and held a press conference about our privacy policy, no mention of an anti-trust probe.

Of the FTC probe, which resulted in a $5 billion settlement to discover a wide range of privacy-related issues. It was not set up last year by allegations that Facebook violated a 2012 consent decree due to inappropriate sharing of information, which include 87 million users, with the now-defunct British political consulting firm in Cambridge Analytica. It is the opinion of the residents included the President of Donald Trump’s 2016 presidential campaign.

The COMMISSION voted, 3-2, to take the settlement, that is, the three Republican commissioners, called the settlement “a complete home run,” which far exceeded any possible court award. Both of the Democratic commissioners, said that it did not go far enough, or to require an to be large enough, that’s fine. The scheme will require the approval of the court.

The republican COMMISSION’s President, Joe Simons, stressed that the FTC has limited authority, and the desire to avoid a lengthy court battle.

“It would have been nice to get more, to get to $10 billion, instead of $5 billion, for example, the gain of the restrictions for the manner in which Facebook collects, uses and shares information about you?” he said at a press conference. “We didn’t have those options. We can’t impose such things because of our own ” fiat.”

Democratic FTC Commissioner, Krishna, I have been complaining that the penalty is “blanket of immunity” for the Facebook executives, “and is not a real limitation in Facebook’s business model,” which means “it is not the solution to the major problems that have led to such violations or to limit Facebook’s ability to collect the data.

Facebook has confirmed that it will pay $5 billion in penalty and said that the scheme would be “a new, comprehensive framework for the protection of the privacy of the people.” The shares closed about 1% higher.

The united states Securities and Exchange Commission (SEC) has said Facebook has agreed to pay an additional $100 million to settle allegations that investors are being misled about the extent of the misuse of users ‘ data.

Under the settlement, Facebook will be the board of directors, an independent privacy committee, which will remove “excessive control by Facebook CEO Mark Zuckerberg’s decisions on the privacy of the user.”

Facebook has also agreed to exercise more control over third-party apps, and went on to say that, in the end, the access to friend’s data, Microsoft Corp and Sony Corp.

The Republican COMMISSION majority said the settlement will “significantly reduce, the Lord has Done in power — something that no government, anywhere in the world, and it has already been done.”

Under the deal, Zuckerberg and other Facebook executives are required to sign up each quarter, certificates evidencing the privacy practices. The COMMISSION said it was a false certification may result in civil and / or criminal penalties.

The us Federal Trade Commission (“FTC”) Chairman, Joe Simons, is pleased to announce that Facebook Inc. has agreed to a settlement of the allegations are wrong, the privacy of the user, at a joint press conference at FTC Headquarters in Washington, d.c., U.S., on July 24, 2019. REUTERS/Yuri Gripas

Facebook is also ruled out of the question for the e-mail password for other services, such as consumer signing up. There is no use of the phone numbers in the ads, and if they have obtained a security function such as two-factor authentication. The company is also requires the user to consent to the use of face-tracking data.

Facebook said that it will be able to find it from other problems, such as the initiation of a review of its systems and warns that it will take longer for the roll-out of software updates.

In a Facebook post, Zuckerberg said:” we take our privacy more in line with our financial controls.” He added that, when features are added or changed, we need to determine the risks, and the steps we are taking to mitigate them.”

The COMMISSION has also stated that the Cambridge Analytica’s former CEO, Alexander Nix, and former app developer, Alexander Kogan, had agreed to a settlement, the limitation of how they do business.

Several of the legislators criticized the plan. Senator Richard Blumenthal of Connecticut, calling it “a fig leaf” that provides “no justification for the very top executives.”

“When you rely on a monetary penalty is to deter Facebook, the FTC has failed to heed history’s lessons. Facebook has already been written on this sentence to be a one-time cost, in exchange for all of the extraordinary gains reaped for a decade, and the abuse of that information,” said Blumenthal, a Democrat.

The republican state Senator Josh Hawley of the Church have also criticized the deal, saying: “if there is nothing to hold the leaders accountable. It is not to punish Facebook in a very effective manner.”

Facebook confirmed that the vice president of marketing, Michel Protti has been nominated to be the chief privacy officer for product, but are covered by the settlement must be approved by the board of directors, the supervisory board, on the internet.

Other legal problems can loom on the. On Tuesday, the. s. The ministry of Justice has said that it will open up a wide-ranging investigation of the most important digital technology business in the if they engage in anti-competitive practices. The department did not enter Facebook or any other company, but cited concerns about “search, social media, retail, and online services.”

The leaders in these areas include, Google, older, Alphabet, Inc., Amazon.com Inc., Facebook and Apple Inc.

COMMISSION HAS DECIDED TO SET UP PROBE

The Democrats on the COMMISSION have complained that the $5 billion penalty might be less than that Facebook profits by violating the privacy of its users. “Until we get the address from Facebook’s main financial incentives for the risk to our personal privacy and security, we will not be able to prevent these problems from happening again,” I said.

The other Democratic commissioner, However, be killed, and said the COMMISSION should have taken note of Facebook and it can be Done in the court of law. They have also criticized the FTC’s decision is to grant, on Facebook, and their leaders, and a disclaimer of liability with respect to claims, if any, that prior to the 12th of June, 2019 at the latest, the violation of a previous FTC settlement.

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Slaughter said that the FTC had failed “to impose substantive limits on Facebook’s collection and use of data about its users.”

I said that the settlement means “by the commission, and the general public — you don’t know what Facebook knows, it’s… It’s hard to conclude that the commission got the better end of the deal.”

Report by David Shepardson; additional reporting by Diane Bartz; Editing by Lisa Shumaker and David Gregorio

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