FTC Approves Settlement with Facebook Over Privacy Concerns

The Federal Trade Commission (FTC) has approved a $5 billion settlement with Facebook following a thorough investigation into the social media giant’s privacy practices. The Wall Street Journal reported that the settlement was approved with a 3-2 vote by FTC commissioners, with the majority of Republicans supporting the agreement.

This settlement comes after a lengthy probe into Facebook’s handling of user data and privacy issues. Facebook had previously estimated that it would pay up to $5 billion as part of the settlement. The next step in the process involves the Justice Department’s civil division, which is expected to finalize an agreement that will impose stricter government regulations on Facebook and its approach to user privacy. The timeline for the finalization of the agreement by the Justice Department is currently unclear, as these reviews are typically part of the FTC’s standard procedure and may not alter the outcome of the decision.

The FTC’s investigation was initially triggered by the Cambridge Analytica scandal, where the personal data of millions of Facebook users was improperly obtained by the data firm. The focus of the investigation was to determine if this scandal constituted a violation of a 2012 consent decree, in which Facebook had committed to safeguarding users’ personal information. The fallout from the scandal resulted in the closure of Cambridge Analytica in 2018 due to its association with Facebook and the broader concerns raised about the firm’s political activities. Cambridge Analytica had used data, including that obtained from Facebook, to create voter profiles and disseminate political content.