Facebook expecting FTC fine of up to $5B over privacy concerns

27 April, 2019, 02:48 | Author: Frank Williams
  • Facebook’s earnings hit by $3 billion legal expense related to FTC investigation

Facebook's privacy scandals have led the company to estimate it'll pay between $3 billion to $5 billion in fines as the US Federal Trade Commission probes the company for privacy violations. Facebook reported revenue of $15.08 billion in the first quarter, beating the $14.98 billion forecasted by Wall Street analysts according to Refinitiv. This equals earnings per share of $0.85. Facebook set aside $3 billion to cover anticipated costs associated with the settlement, but said the charges could reach as high as $5 billion. While Facebook estimated a settlement would range between $3 billion and $5 billion, it cautioned "there can be no assurance as to the timing or the terms of any final outcome".

In addition to the FTC investigation, Facebook faces several others in the USA and Europe, including by the Irish Data Protection Commission, and others in Belgium and Germany.

The problems started past year after news leaked that Cambridge Analytica, a political data firm that harvested data from up to 87 million Facebook users to influence the 2016 USA presidential election.

Investors have generally shrugged off issues surrounding data use, regulatory hurdles or political pressure when evaluating Facebook, focusing instead on its robust financials.

Shares rose in after-hours trading.

The social networking site and the FTC have been negotiating over the fines amount for months.

The one-time charge slashed Facebook's first-quarter profit considerably, although revenue grew by 26 per cent in the period.

More news: Victor of $768.4 Million Powerball Jackpot is 24-Year-Old Wisconsin Man

But the expectation of an FTC fine may portend future trouble, warned the eMarketer analyst Debra Aho Williamson. However, the Company still managed to earn $2.429 billion in profit, which is quite lower than the profit generated in the last quarter, or even a year ago.

The shares are up by almost 40% in the year to date, far outperforming the broader market, and were up almost 5% in late trading on Wall Street. Last March, the United States regulator confirmed it was investigating Facebook over the Cambridge Analytica privacy scandal, which exposed the personal data of 87 million people to a political consultancy hired by Donald Trump's presidential campaign.

Ireland's Data Protection Commission said Thursday it's trying to determine if Facebook violated European rules by how it stored hundreds of millions of user passwords on internal servers.

The company is holding a conference call about the earnings at 2 p.m. PT.

He focused his remarks on outlining Facebook's plans for growth, which include building a private messaging platform.

In addition to that, it now boasts 1.56 billion daily active users, which is an increase of 2.63 percent from the last quarter. It continued with news that Facebook had suffered a major data breach.

Recommended:

  • Rachel Johnson to stand as pro-remain European election candidate

    Rachel Johnson to stand as pro-remain European election candidate

    The party - formerly known as The Independent Group - is made up of 11 MPs who quit Labour and the Tories . Candidate Ali Sadjady was forced to stand down within hours over a derogatory tweet.
    Emery urges Arsenal to retain belief in top-four race

    Emery urges Arsenal to retain belief in top-four race

    Diogo Jota added a third just before half time after the Gunners gave the ball away and he ran at the away defence before firing a shot under goalkeeper Bernd Leno .
    That Arya Scene Has People Freaking Out

    That Arya Scene Has People Freaking Out

    While we're not thespians ourselves, we can imagine that doing a sex scene - regardless how old you are - is an awkward affair. You weren't the only one surprised by that scene between Arya Stark and Gendry on Game of Thrones .
  • Justin Bieber attends Bruins-Leafs Game 7

    Justin Bieber attends Bruins-Leafs Game 7

    In five games in round one, Wagner noticeably struggled, with zero points, a minus-2 rating, and just five shots on goal. Toronto could have gone up 3-1 in Game 4 on home ice, but were sluggish before a late rally in a 6-4 loss.
    Shane Long's Premier League record will be hard to beat, says Hasenhuttl

    Shane Long's Premier League record will be hard to beat, says Hasenhuttl

    The previous record holder was Ledley King, who scored after 9.82 seconds during Tottenham's win over Bradford City in 2000. But after scoring his second goal of the season against Liverpool recently, he now has three in four matches.
    Tottenham Hotspur vs. Brighton & Hove Albion

    Tottenham Hotspur vs. Brighton & Hove Albion

    And Tuesday night's clash between top four-chasing Tottenham Hotspur and survival-seeking Brighton & Hove Albion was no different. I think I have been very lucky so far with the amount of injuries that I have had and the amount of games that I have missed.
  • Joe Biden formally joins Democratic presidential contest

    Joe Biden formally joins Democratic presidential contest

    A Biden spokesman did not immediately respond late Monday night to Flores' most recent criticisms. With a record in elected office that stretches half a century, Biden faces multiple challenges.
    Man, 72, from Pinellas County is latest to contract measles

    Man, 72, from Pinellas County is latest to contract measles

    Yet, one in five children in Africa still does not have access to all the necessary and basic vaccines a child should receive. According to the CDC, the worst post-2000 measles outbreak was recorded in Amish communities in OH , affecting 383 people.
    CDC: Measles outbreak has spread to southern states

    CDC: Measles outbreak has spread to southern states

    Check your immunity to measles Measles is a very infectious viral illness that spreads easily from person to person. Although only 5 states are now experiencing outbreaks, 22 states have reported confirmed cases of measles in 2019.
  • Tyreek Hill responds, says his son’s happiness is his number one priority

    Tyreek Hill responds, says his son’s happiness is his number one priority

    Espinal's response was, "He is terrified of you". "I love and support my family above anything", Hill wrote in press release. When you get the facts, then you make a decision about how it fits into our personal conduct policy.
    Ann Widdecombe: Former Tory MP to stand for Brexit Party

    Ann Widdecombe: Former Tory MP to stand for Brexit Party

    Brady said, however, that May must provide more clarity about her departure and provide "a clear roadmap forward". It would mean a fresh challenge not taking place until the end of 2019, unless the rules are changed.
    The 59 best memes from Game of Thrones season eight episode two

    The 59 best memes from Game of Thrones season eight episode two

    While they are fighting, the Night King will be turning the population of King's Landing into wights. I am not looking forward to our faves becoming White Walkers , and yet you just know they will.


Popular

Xiaomi Launches Redmi Y3 with 32MP Selfie Camera & Snapdragon 632 SoC
TelecomTalk is a premier and credible provider of the latest news and analysis on the Indian telecommunication industry. The Redmi 7 offers Qualcomm Snapdragon 632 SoC, 4000mAh battery and dual rear cameras at a starting price of Rs 7,999.

Democrats leave door open to Trump impeachment
Other 2020 Democratic presidential candidates, while supportive of the idea of impeachment, were more circumspect in their responses.

This PC can’t be upgraded to Windows 10? Here’s the workaround!
Users can download the said RTM build by opting for the Release Preview Insider ring or from MSDN if they have a subscription. An external USB device or SD memory card is attached to the computer.

Iran, US in war of words over prisoners
He described the B Team as including Israeli Prime Minister Benjamin Netanyahu and Trump's national security adviser John Bolton. Mr Zarif said at an event at the Asia Society in New York: "We believe that Iran will continue to sell its oil".

Paul George Hates On Damian Lillard's Three-Pointer: "That's A Bad Shot"
We kept our composure and after one win that's what they made a decision to do. "But it is what it is". The ball fell through the net and Lillard was mobbed by his teammates after the final horn sounded.

Netanyahu wants Golan Heights settlement named in honor of Trump
The stretch of land is located between Syria and Israel and was seized by Israel during the Six-Day War of 1967. The global community has not recognised the annexation until now.

Police to update latest in search for missing Crystal Lake boy
In December, for instance, an officer described unlivable conditions in the home with "dog feces and urine" scattered there. As police spent the week scouring the area, they said there was no indication the boy was abducted.

Pep Guardiola: Riyad Mahrez a part of Manchester City future
The 26-year-old has endured a hard campaign having failed to make it off the substitutes' bench for City's last three games. And Roy Keane believes United's players will be ready to throw Solskjaer "under the bus". "But I won't be watching".

New OnePlus 7, 7 Pro Leaks Revealed
In a bid to score the highest and upscale the best-performing smartphone chart, ZTE adds another smartphone into the series ... The third camera will feature an ultra-wide lens with a 16MP sensor with an F/2.2 aperture with a 117-degree field of view.

Damian Lillard sparks Portland past OKC for 3-1 lead
Oklahoma City jumped to a 16-6 lead in the first four minutes, with George hitting his first four shots and scoring nine points. A first-round Western Conference playoff series returns to the Pacific Northwest with the hosts trying to close things out.