With France likely wading into trade war territory with Orange Don having unilaterally approved a digital services tax yesterday to try and get Google, Facebook and Amazon to pay up for their long use of double Irish tax strategy on non-US profits (theguardian.com, Jan. 2019), it’s time for the punishment paddle to be at least seen to be brandished on home turf too:
Cambridge Analytica: ‘US regulators approve $5bn Facebook fine’ (bbc.co.uk).
US regulators have approved a record $5bn (£4bn) fine on Facebook to settle an investigation into data privacy violations, reports in US media say.
Although the largest fine ever levied by the FTC on a tech company it conveniently matching the $5bn estimate Facebook said it had told investors it had put aside earlier in the year and is seemingly seen by most as Zuck’s Fidiotbook getting away with it again:
Facebook’s $5 billion FTC fine is an embarrassing joke (theverge.com).
In relation to Fidiotbook’s stock price actually going up after the news, with Pocket in which I had the story cached letting it be known the story is trending—probably on Fidiotbook, or at least until… Oh, look! A dancing cockatoo!!! (Facebook).
That, as the New York Times’ Mike Isaac points out, is the real story here: the United States government spent months coming up with a punishment for Facebook’s long list of privacy-related bad behavior, and the best it could do was so weak that Facebook’s stock price went up.
With the largest FTC fine in history representing “basically a month of Facebook’s revenue” and investors content for all intent and purposes those privacy indiscretions have been paid for.
Updated 24th July 2019
But trying hard to ensure independent eyes will in future be watching the virtual ball:
Facebook board to tighten oversight, as Zuckerberg keeps control (wsj.com).
Along with a historic $5 billion fine, the agreement requires Facebook to create a privacy committee stocked with independent board members.
Which nawty Zuck can’t remove without the backing of investors who seemingly before were happy in blissful ignorance while profit rolled in and who likely will be again as long it continues to.
Recent/related stories
- Mark Zuckerberg calls for government and regulators role in updating rules of the of internet (Latest Picks 31st March 2019)
- Google fined €1.5bn by EU over advertising (Latest Picks 20th March 2019)
- Leaked documents reveal Facebook used manipulative global lobbying to avoid regulation (Latest Picks 2nd March 2019)