Jul 122019
 
 July 12, 2019  Posted by  Breaches, Business, Featured News, U.S.

It looks like Bloomberg beat the FTC to breaking the news. David McLaughlin and Daniel Stoller report:

The U.S. Federal Trade Commission approved a record privacy settlement against Facebook Inc. requiring the social-media company to pay about $5 billion to resolve an investigation stemming from the Cambridge Analytica data scandal.

The FTC’s settlement was approved by a vote of 3-2, according to two people familiar with the matter. It caps a probe that opened in March 2018 after news that Cambridge Analytica, a consulting firm hired by President Donald Trump’s campaign, obtained user data from a researcher who created a personality quiz app on the social network.

Read more on Bloomberg. I’ll post the FTC’s statement below when it’s online. In the meantime, realize that although this is the largest fine the FTC has ever issued, it’s such a drop in the bucket for Facebook, that investors seem actually relieved.  As Matt Stoller commented, “Facebook’s market cap is up roughly $6 billion upon announcement of the $5 billion fine. Anyone else see an incentive problem here?”

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