Moscow, July 15 — “News. Economy” is On Facebook fined in the amount of about $5 billion from the Federal trade Commission (FTC) of the United States for leaking data 87 million users in 2011.
This is a record amount for technology companies in the United States. Previously, the maximum fine imposed by the Commission amounted to $22.5 million the same amount in 2012 was ordered to pay Google. European authorities had already fined IT-giants for a similar amount. For example, last year the EU has punished Google and ordered to pay $5.1 billion for violating antitrust laws.
Despite the fact that the company Mark Zuckerberg was punished, many lawmakers, lawyers and other experts were dissatisfied with the resolution of the conflict, because the scale of Facebook, even a couple of billions are insignificant.
In April the company postponed a 3 billion pending the appointment of a penalty, and the revenue of Facebook in the first quarter of 2019 amounted to $15.1 billion it is also Noted that after reports from the WSJ on the amount of the potential penalty shares of Facebook rose in price.
For Facebook $5 billion account for about 9% of total revenue in 2018, which totaled $55,83 billion.
The Federal trade Commission launched an investigation against Facebook in March last year. The social network has violated the agreement, according to which Facebook must obtain user consent before to convey his private information to others.
In March 2018, it became known that the company Cambridge Analytica collected user data through your app on Facebook and used them for political advertising, particularly during the presidential campaign in the United States and a referendum on British exit from the European Union in 2016.
The head of Facebook mark Zuckerberg acknowledged that the social network made several mistakes, which as a result led to the fact that the personal data of millions of users was used by political strategists.
The maximum penalty in this case is $5 billion, which is a record in the history of the Commission. However, the Western media were against such a settlement, as there is no guarantee that even after such a large fine Facebook will not continue to do what worked previously. In addition, $5 billion may are a record for the FTC, but for a Corporation like Facebook is just a drop in the sea.
The decision also includes restrictions regarding the handling of personal data of users. Facebook has agreed to greater oversight over how the company stores user data, reports The New York Times. This transaction does not impose strict constraints on Facebook to collect and exchange personal data with third parties.
Some members of the Trade Commission insisted on tougher measures: two Democrat in the composition of the FTC voted against the agreement, three members of the Commission — for, the document was adopted by simple majority of votes, writes the NYT.
Presidential candidate Elizabeth Warren, which was previously called “break up” Silicon valley, to deprive her of the absolute power, believes that the deal with the Federal trade commissions is a “victory for Facebook”. Agrees with her and Senator mark Warner, who accuses the FTC of failing to take measures to protect personal data of citizens.
Business Insider indicates that after this Exodus, mark Zuckerberg can “feel like Donald trump.” In 2016, the next US President recklessly declared that can shoot someone on Fifth Avenue in new York and still not lose votes.
The publication States that, negligible in the framework of Facebook’s income, a fine of $5 billion will make Zuckerberg feel that he can get away with not only a data breach of millions of people, but more serious offenses.
Despite the fact that many members opposed the agreement, there were those who supported him. According to BI, they can “continue to fool ourselves into thinking that Facebook treated cruelly”. However, if social networks have been relatively bloodless to evade responsibility for data loss of 87 million people, who knows what Zuckerberg and his company will do next time.
The story of Cambridge Analytica has caused a much wider resonance among the public than the previous errors of the company in the field of personal data of users. This is probably due to the scale of the data breach has affected up to 87 million users — and due to his connections with Cambridge Analytica election campaign trump.
Facebook was already under scrutiny in connection with the alleged hacking social networks “Russian hackers” who spread propaganda that benefited the trump campaign during the elections. It turned out that Cambridge Analytica was only one of numerous scandals related to privacy and security faced by Facebook.
Later, the company acknowledged that attackers separately collected data on “most” of its 2 billion users, around 14 million users have suffered from errors due to which they supposedly closed status updates have become available, data on 30 million users were compromised in a hacker attack, and that the pictures are about 7 million users that was supposed to be confidential, can be submitted 1500 applications.
Moreover, according to the lawsuits, the company knew about the problems associated with Cambridge Analytica, in 2015. And, according to a report by The New York Times, the company has granted privileged access to its user data, some companies even after you supposedly closed it for most companies.
Besides all this, the political situation escalated. Not only Democrats, but Republicans are also opposed to Facebook. With the support of trump, they have accused the company and other social networks to censor conservative voices. And both sides call for antitrust investigation of the company Zuckerberg and the new rules, which could limit the power of the social network.
A major crisis of confidence in the field of data protection and charged with distribution of fake news, which Facebook faces in the last 2 years, has led to the fact that the society started to hear voices in support of the idea of separation of tech giants.
The Creator of the world wide web Tim Berners-Lee in an interview with Reuters said that the tech giants of Silicon valley have become so dominant that they may have to share if competitors or the changing tastes of users will not reduce their influence.
The digital revolution has given rise to several US-based technology companies, which now collectively have greater financial and cultural power than most States.
“Ultimately, you get one company that dominates in this area, so another option besides collapse, no,” said 63-year-old Tim Berners-Lee, the UK scientist who invented the web in 1989, “There is a danger of concentration,” he said.
At the same time, he noted that the speed of technology and changing tastes of users can be brought down to earth some of the largest technological corporations.
The Senator from Massachusetts Elizabeth Warren gathered to run for the U.S. presidency in 2020, intends to lobby for the adoption of a law that will push Apple to change the current business model. In particular, the main claim a Warren for the App Store. In her opinion, the company has the right to engage in maintenance of the corporate application store, and at the same time to place ON their own development, because it thereby violates the rights of third-party developers.
“If you run the distribution platform IN to which you have access to third-party developers, you have no right to place their programs, because in this case you have two undeniable advantages. First, you get information about how third party sellers conduct their trade, and can use it. And secondly, there is a high probability that consumers will prefer your product as the owner of the platform,” says Warren.
Elizabeth Warren has also proposed to introduce anti-monopoly legislation the concept of “platforms for General use”. This will include companies with annual revenue of over $25 billion offering for General use on the Internet marketplaces, or exchanges of a platform for communication between the parties — thus, the definition of get and Amazon, and Facebook, and Google.
The Senator gave an example when in 90-ies in the technology market of the USA was dominated by company Mircosoft. A range of Antimonopoly measures taken by the government, helped to gain a foothold in the market of new companies, such as Google and Facebook. She noted that now these companies got too large market share, which provides them with full control over this sector of the economy.
“Almost half of all e-Commerce goes through Amazon. More than 70% of all Internet traffic passes through sites that are owned by Google or Facebook. These companies use their own resources to suppress small business and also for the substitution of the interests of the American people of their financial interests,” added the Senator.
It is necessary to prevent technological mergers, which the Senator considers anti-competitive. The politician claims that these mergers and acquisitions caused damage to the competition.
If such a law is adopted, for example, the Amazon Basics brand need to be detached from the Amazon Marketplace, and Google’s advertising network from search engines. In addition, Warren proposes to repeal many anti-competitive mergers of technology companies, including the acquisition of WhatsApp and Instagram company Facebook, Waze, Nest and DoubleClick, Google, and Whole Foods and Zappos by Amazon.
Elizabeth Warren believes that such reforms will not impact globally on Internet: the small business will have a chance to compete with Google, Facebook or Amazon, all of which will also provide services to users.
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