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Regulators reportedly discussing record-breaking fine for Facebook over privacy issues

Regulators reportedly discussing record-breaking fine for Facebook over privacy issues

Read more on Axios

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  • Fines are largely symbolic. Facebook’s value is a function of the data in its portfolio of assets - Facebook, Instagram, WhatsApp, Messenger - and most importantly, in its ability to freely share and leverage data within that portfolio. Their biggest risk from a regulatory standpoint is a breakup of

    Fines are largely symbolic. Facebook’s value is a function of the data in its portfolio of assets - Facebook, Instagram, WhatsApp, Messenger - and most importantly, in its ability to freely share and leverage data within that portfolio. Their biggest risk from a regulatory standpoint is a breakup of the portfolio to force the operation of the assets within silos. What will be interesting to see is how Facebook combats against the growing chorus of criticism with its efforts in blockchain and identity management. In any case, until the company’s internal and business incentives align with that of the user (who voluntarily contributed the data), expect the status quo to continue. The flip side is that as an entrepreneur I can say there is no platform more attractive to advertise on in terms of customer acquisition cost metrics.

  • Fines are the least of Facebook’s problems. Between what they’re facing from new privacy laws being considered in jurisdictions across the US, potential anti-trust issues and general antipathy from pretty much every reporter and media outlet in existence, the fines are a walk in the park.

  • Triple the 22.5M fine and FB brass will likely let out a collective sigh of relief; the stock will likely pop as investors will cheer such a quaint punishment.

  • Apparently, the record for an FTC fine is $22.5 million. Even 10x that amount wouldn't change their business practices.

  • Money talks. This could be very loud.

  • Fines mean nothing to these companies. Nothing will change until jail is at least on the table for the leadership.

    Edit: reading this I totally glossed over the fact that the record FTC fine is apparently $22.5 million. Yes, with an M, not a B. What a fucking joke.

  • A discussion is a long way from an action, but it is a start. The enforcement mechanism of the consent decree had a huge hole in it ... which is a huge bummer, as FB appears to have violated the spirit of the decree by trading user data — without prior consent — for competitive advantage.

    I don’t know

    A discussion is a long way from an action, but it is a start. The enforcement mechanism of the consent decree had a huge hole in it ... which is a huge bummer, as FB appears to have violated the spirit of the decree by trading user data — without prior consent — for competitive advantage.

    I don’t know how this part of the story will turn out, but would like to reiterate my view that the problem with Facebook and Google is the business model. Advertising requires manipulation of attention, which, at the scale of FB and Google, requires massive surveillance.

    As users, we have more power than we realize. The internet platforms need our attention. They provide convenient services to get it. If each of us would accept a little inconvenience, we could force change. Would you give up a little convenience to help save democracy? To protect yourself and your kids from manipulation? To protect your privacy, which is to say, your ability to make choices without fear? To reinvigorate innovation and our entrepreneurial economy?

    These are not idle questions. We don’t have to stop using the platforms we love. With relatively small changes in behavior, we can regain control we did not know we had lost ...

  • Pro GDPR people thought you might say that. GDPR-type laws could have brought the measly $1M fine to $1 billion.

    That’s probably enough to get techs attention. And probably also why the media are coordinating these calls to action.

    Exhibit A: https://share.qz.com/news/1380501/

    B: https://share.qz.com/news/1378415/

  • I have no special love for Facebook and there’s certainly a ton of negligence (and maybe a little worse), but all of us who use it are complicit in creating the monster and I wonder what hue and cry would result from a change in business model that prevented the service from being free for all.

  • Zuckerberg lied under oath to a congressional committee. They should recommend criminal prosecution.

    If we just fine these big companies for their wrong doing, they will never change. If key people go to jail, they might alter their behavior.

    When you go to jail, you have to get to know such COMMON people.

  • Maybe, it would affect Japan Facebook.

    “This would be the first major punishment against Facebook in the U.S.”

  • Google was fined $5 billion by the EU. That’s a good start.

  • Companies like these must be held accountable for their actions (or lack thereof in some cases). Millions of people trust these big companies with their data and by their lackadaisical handling of said information that trust has been broken.

  • We have witnessing lots of big corporations are imposed fine, and pay huge amount of money.

    However none of those solve fundament issues.

    They apparently do not care paying fines.

  • The fine should be crippling. Facebook administrators should be criminally prosecuted.

  • $22mm. Cute.

  • The fine is miniscule at best when you look at Facebook's financial output. To have any meaningful economic impact through the imposition of fines, regulators have to follow in the footsteps of the EU to impose fines in the billions.

  • I despise government regulation, and this government is so far beyond inept—add technotarded to the mix—that I doubt that they can even get aroused enough to peen Zuckerberg’s ego and bank account via adequate regulation.

  • Time to leave FB

  • My