Facebook could face a $5 billion fine
Facebook has acknowledged that the Federal Trade Commission (FTC) can impose a penalty of three to five billion dollars in data privacy cases. In 2011, Facebook had entered into an agreement with FTC, under which the social media site had the condition of the need for users to agree to share the data. Facebook is allegedly accused of breaking this agreement.
On the other hand, Facebook’s chief financial officer David Weiner said the issue has not been settled yet. Therefore, it is not clear how much FTC will charged as a fine. But according to estimates, there could be a penalty of about $ 3 to 5 billion dollars. If fines imposed are in that range then it will be equivalent to one month’s revenue of the company. The company has issued a financial report of 2019, in which this topic has been briefed upon.
$ 2.4 billion profit in last quarter
Facebook has announced a profit of $ 2.4 billion (about Rs 17,000 crore) in the January-March quarter. This is 51% lower than the corresponding quarter of last year. In the case of data privacy, the company has kept three billion dollars separate for legal expenses. That’s why profit has decreased. However, this has not affected investors. Apart from this, Facebook’s average user revenue per year has increased 16 percent to $ 6.42. It was $ 5.53 in January-March last year. The number of Daily Active Users increased by eight percent to 1.56 billion.
