The US Federal Trade Commission has voted to fine Facebook $5 billion for committing digital privacy violations, according to The Wall Street Journal.
The FTC reportedly voted 3-2 along partly lines with the two Democratic commissioners dissenting. The settlement is now headed to the Justice Department, where it'll be reviewed and finalized.
So far, the FTC has declined to comment on the report. But in March 2018, the regulator confirmed it was investigating Facebook amid news of the Cambridge Analytica scandal, which exposed 87 million people's personal data to a political consultancy at one point hired by President Trump's 2016 campaign.
Facebook also declined to comment on the reported fine. But in April, the company disclosed it had set aside $3 billion to pay off potential expenses from the FTC's investigation into the company. (In this year's first quarter alone, the company raked in $15 billion in revenue.)
Critics of Facebook are already slamming the FTC over the reported $5 billion fine, saying the amount is too low. Among them is Democratic US Senator Ron Wyden of Oregon.
"Despite Republicans' promises to hold big tech accountable, the FTC appears to have failed miserably at its best opportunity to do so," Wyden said in a statement. "This reported fine is a mosquito bite to a corporation the size of Facebook. And I fear it will let Facebook off the hook for more recent abuses of Americans' data that may not have been factored in to this inadequate settlement."
Given Facebook's repeated privacy violations, it is clear that fundamental structural reforms are required. With the FTC either unable or unwilling to put in place reasonable guardrails to ensure that user privacy and data are protected, it's time for Congress to act. — Mark Warner (@MarkWarner) July 12, 2019
Democratic US Senator Mark Warner of Virginia also weighed in. "With the FTC either unable or unwilling to put in place reasonable guardrails to ensure that user privacy and data are protected, it's time for Congress to act," he said.
Although details of the FTC's proposed settlement with Facebook remain unknown, it'll almost certainly include some oversight component. This could mean Facebook will need to appoint a federally-approved official focused on ensuring the social network follows its privacy policies.
However, some critics, including a Facebook co-founder, have called on US regulators to dismantle the company, claiming it has a monopoly over the social networking industry. "A Federal Trade Commission that was serious about its job would push for structural reforms —like spinning off Instagram and WhatsApp—that would create competition in the social media space and make Facebook more likely to respect its users," said David Segal, executive director of internet activist group Demand Progress, in a statement.
Editor's Note: This story has been updated with statements from US senators Ron Wyden and Mark Warner.