Facebook expects up to $5B FTC fine
Facebook believes that a Federal Trade Commission (FTC) probe into the company’s handling of the Cambridge Analytica scandal could end up costing it between $3 billion and $5 billion.
The social network disclosed to investors in its quarterly earnings report on Wednesday that it had already set aside $3 billion as a legal expense. Facebook said that it had not yet reached a settlement with the agency, and it’s unclear when the case would be resolved.
Some context for the numbers: Any multibillion-dollar fine over privacy violations would be a record for the U.S.
But it might not do lasting damage to Facebook, which revealed on Wednesday that it had made more than $15 billion in revenue through the first three months of 2019.
Facebook’s shares shot up nearly 5 percent in after-hours trading after the quarterly earnings was posted.
An FTC spokeswoman declined The Hill’s request for comment.