Facebook is in discussions with the Federal Trade Commission over a settlement that would include appointing privacy-focused executives in the C-suite.
Politico, citing sources close to the discussions, reported the appointment of privacy executives would be in addition to the social media giant paying a multibillion-dollar fine that could be in the $3 billion to $4 billion range. One of the sources told Politico the fine will likely be at the high end of the range. When reporting earnings last week, Facebook said it is likely to get hit with a fine of between $3 billion and $5 billion to settle an investigation by the FTC lodged against the company after the Cambridge Analytica data scandal broke. In that case, the now-defunct political consulting firm was able to access the data on 87 million Facebook users without their consent.
Talks are ongoing and details could change, but under the current discussions, Facebook would name a privacy executive that is approved by the federal government. It would also have to create a privacy oversight committee that is independent but could include Facebook board members. Facebook CEO Mark Zuckerberg would also become “designated compliance officer” in charge of carrying out the privacy policies at the company. It would make Zuckerberg accountable for how the social media giant handles any privacy issues, noted the report.
Politico reported that with the proposed settlement, the FTC would be able to veto the choice for privacy executive. The new oversight committee would meet each quarter and issue reports about the privacy practices of Facebook. Its not clear what authority the privacy executive or assessor will have or whether or not the committee on privacy will have the power to impact decisions at the company. It’s also not clear who would pay the salaries for the new jobs and how they would interact with the current Facebook board.
The settlement needs the support of the majority of the FTC’s five commissioners in order for it to be approved. If the two sides can’t reach a settlement, then the issue will go to court, if the Justice Department agrees to represent the FTC in the lawsuit, noted the report.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
UK Probes Lindab’s Acquisition of HAS-Vent Amid Fears of Market Monopoly
Apr 28, 2024 by
CPI
Shein Faces EU Regulations Over User Data
Apr 28, 2024 by
CPI
Google Fights Back Against US Antitrust Lawsuit
Apr 28, 2024 by
CPI
US Homeland Security Establishes Blue-Ribbon Board with Tech CEOs to Advise on AI
Apr 28, 2024 by
CPI
FTC Accuses Amazon Executives of Using Disappearing Messaging Apps to Conceal Evidence
Apr 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI