News

Facebook will warn of the costly privacy changes, two other AMERICAN-probe

(Reuters) – Facebook Inc’s (FB.(O) said on Wednesday that the new data privacy rules, and the future of privacy-focused product changes that could slow the growth of the group’s revenue and costs are greatly increase, driving down its shares in after-hours trading, even as revenue topped estimates.

FILE PHOTO: Attendees walk past a Facebook logo during the Facebook Inc. F8 developers conference in San Jose, California, united states, April 30, 2019. REUTERS/Stephen Lam/File Photo

The outlook soon after that, the company has agreed to pay $5 billion for the completion of a data, privacy, probe, and stated that he was against a new U.S. government anti-trust investigation.

As with the quarterly results, and its settlement with the U.S. Federal Trade Commission (ftc) over privacy issues, show significant progress in the fight against two of Facebook’s biggest challenges in the newly-published us FTC anti-trust probe, the ongoing privacy review shows that obstacles remain on the road ahead. Facebook said that the FTC had said that it was in June, and the anti-trust probe.

The shares of Facebook, which also owns WhatsApp and Instagram, have decreased by 1% after hours to $202.50, after the first rise in the quarterly results. The shares have recouped most of the losses that led to a year-ago, with the concern of slowing down the use and cost of improvement of the right to privacy, which would have led to the largest-ever one-day fall in to Facebook.

On Wednesday, Facebook chief financial officer Dave Wehner told analysts that the FTC settlement will require a significant investment in both people and technology. He said the advertising revenue would be affected by the new privacy legislation, the roll-out of worldwide, any changes in the privacy rules, and the operating system on which Facebook relies, and the company has some of its own services.

Facebook has had an increase in the number and variety of the advertisements, on the basis of the company, as users are drawn in the direction of the private sector and other interactive features, such as the Stories. It has responded to political and regulatory pressure due to the expansion of the programmes and promises made in connection with the securing of information and the policing potentially offensive content.

The initiatives will continue to be a drag on earnings, but the company’s trove of information about its users, remains a valuable resource for advertisers.

Facebook, which had set aside $3 billion in the first quarter to cover the costs of a regulatory scheme, ” he said, and took a $2 billion expense in the second quarter to account for the remainder of the $5 billion settlement with the FTC. The settlement is still subject to the approval of the court.

Facebook confirmed in a statement from the U.s. Justice Department’s announcement on Tuesday that an “anti-trust review of the industry-leading online platform.”

In the second quarter, Facebook reported 2.7 billion monthly active users, and 2.1 billion daily users on Facebook, Messenger, Instagram and WhatsApp for both numbers on the same as in the last quarter of the year.

Fourth quarter revenue grew to $16.9 billion from $13.2 billion a year ago, beating analysts ‘ average estimate of $16.5 billion, according to IBES data, Refinitiv.

“The news about the FTC, and the privacy of your personal data, together with the anti-trust investigation, and any additional upside risks are likely to hang over the stock, but it looks like the platform is still a very popular tourist destination for its users,” Morningstar analyst Ali Mogharabi said in an e-mail to Reuters.

U.S. PROBES

Facebook has been facing questions over the past three years, regulators and users around the world, the way in which the service is designed to facilitate the sharing of news and events with your friends and family is to become a platform for the dissemination of poor and inaccurate information about the political, health, and other topics of interest. A series of data breaches has prompted research in several different countries.

The U.S. Department of Justice said on Tuesday that it is investigating complaints that some of the & quot; search, social media, retail, and services-on-line” are engaging in anti-competitive practices, in an apparent reference to the major tech companies, including Facebook.

The COMMISSION’s investigation, which was settled on Wednesday because of allegations that Facebook is inappropriate information being shared by the 87 million people, with the now-defunct British political consulting firm in Cambridge Analytica. A Netflix documentary on the scandal, “The Big Hack,” in premiere (Wednesday).

The penalty, which some lawmakers have called it “a slap on the fingers for the second quarter and a net profit of $2.6 billion, compared with $5.1 billion a year earlier.

With the exception of the amount of the fine, and a $1.1 billion one-time tax, the profit would be $1.99 per diluted share, Facebook said.

The tax arises out of a judgment of the court of justice, in which the company was not involved in this, which is the sum of the required change in the accounting policy for share-based compensation expense.

Costs, a jump of 66% compared to a year ago, to nearly $12.3 billion, as Facebook continues to ramp up its expenses to the improvement of the contents and the safety of the platform.

Facebook has said that it is expected that the expenditure and the income from them, to get closer to even but a few obstacles still remain.

Related Coverage

  • Note: Google, Facebook may face in the US anti-trust probe

In the emerging markets, such as India, the revenue is lagging behind Facebook’s number of users. The efforts for the creation of new businesses, such as the recently announced plans for a cryptocurrency, called Scale, as part of a move into digital payments, and facing pushback from lawmakers and regulators.

In the meantime, the company is developing additional products, which can be more expensive to build than mobile apps.

There was some good news in the second quarter of the year. For example, sales in Europe accelerated for the first time in several quarters, growing by 24% compared to 20% in the last quarter of the year.

Report by by Paresh Dave, San Francisco, Akanksha Rana, Bengaluru; Editing by Leslie Adler

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular