US regulators on Wednesday formalized a record $5 billion fine on Facebook for privacy violations in a settlement requiring the world’s biggest social network to “submit to new restrictions and a modified corporate structure.”
The Federal Trade Commission said the penalty was the largest ever imposed on any company for violating consumers’ privacy and one of the largest penalties ever assessed by the US government for any violation.
“Despite repeated promises to its billions of users worldwide that they could control how their personal information is shared, Facebook undermined consumers’ choices,” FTC Chairman Joe Simons said in a statement after the split decision by the agency, with two members saying the penalty was insufficient.
This year in May, India too has had reportedly joined European Union (EU) in investigating Google over alleged Android antitrust concerns. Indian competition watchdog Competition Commission of India (CCI) had reportedly ordered an investigation into Alphabet Inc’s unit Google for allegedly abusing the dominant position of its popular Android mobile operating system to block rivals.
In February last year, India’s CCI imposed a fine of Rs 136 crore (~$21.1 million) on Google which was for unfair business practices in the Indian market for online search.
A World Economic Forum (WEF) 2017 report took everyone in the financial services sector by surprise when it suggest that it is the technology giants like Facebook, Amazon and Google that pose a bigger threat to the longevity of banks and their services.