$5 Billion Fine on Facebook, But Zuckerberg Made $1 Billion From It Too!!!!

Must Read

Hands-Free Resources: How Businesses Are Using AR to Make Workplaces Safe and Productive

The role of efficiency and ease in the modern world has become forefronted when it comes to technology, particularly...

Top Countries by App Downloads Q2 2021: India Dominates With 7 Billion+ Downloads [REPORT]

As the adoption of smartphones and the Internet has increased over the last decade, so has the number of...

TikTok Is Now The World’s Most Popular Non-Facebook App With Record 3 Billion Downloads!

When you think of the world's most popular apps, the first name comes into your mind: Facebook. If not,...

Facebook Inc. (NASDAQ:FB) again made headlines when the stocks of the social platform rose significantly, after $5 billion fine on Facebook imposed by FTC.

In April we reported the first time that Facebook is staring at the maximum penalty that any tech company faced ever. In the latest development, it’s now confirmed that that FTC, by a narrow margin of 2-3 votes, has imposed a $5 billion fine on Facebook. The fine was imposed for violating the earlier consent decree. The app sucked up a lot of data that eventually landed up in the hands of Cambridge Analytica’s. The fine gathered mixed reactions from people, the majority of them being angry.

The former acting-CTO of the FTC, Neil Chilson said that this sort of thing is extremely aggressive and most importantly considering the FTC’s mandates and powers. Keeping it brief he said that considering FTC’s power and the incident with Cambridge Analytica, a $5 billion dollar fine is quite a lot for the harms are not directly quantifiable. He backed up FTC by saying that it is only implementing a general law to put a stop on practices that harm the consumers.

Advertisements

FTC has been an aggressive privacy enforcer using a statute that isn’t specifically intended to protect privacy.

But, what’s more, interesting here is the effect of FTC fine on Facebook, especially on Mark Zuckerberg, which is quite unprecedented, rather surprising.

After FTC confirmation on $5 billion fine, Facebook shares rose up to 1% on Friday itself. This is the highest jump the company has recorded in the past year. It has a direct impact on the net worth of Mark Zuckerberg who gained quite an amount from this fine. The value of his stakes in Facebook saw a rise of more than $1 billion after 30 minutes of the news.

Zuckerberg is one of the leading shareholders of Facebook. A rise of only 1% in the company’s stocks value caused him a huge profit. The total value of Facebook shares owned by Zuckerberg is now around $84.1 billion at their price of $204.87.

This move by FTC was meant to hit the social media behemoth hard enough for mishandling their users’ data. Nobody, however, thought it would turn into a profit for Zuckerberg.

Advertisements

It is also being reported that some analysts looked into the matter and said the whole incident appears to be a green light for Facebook to continue further unchecked. Analyst Daniel Ives of Wedbush said, “This closes a dark chapter and puts it in the rear-view mirror with Cambridge Analytica.

Facebook has got a few privacy breach issues in its bag recently. Now the question is, after such a massive fine which has hardly made any dent, will there be any further actions against this privacy mishandling issue by Facebook? Moreover, are these fines doing any good to solve users’ privacy concerns? Have the tech giants like Facebook got a free ride to misuse, abuse or pass on customers’ sensitive personal data to companies across the world? Authorities like FTC must answer to such questions!

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Top Countries by App Downloads Q2 2021: India Dominates With 7 Billion+ Downloads [REPORT]

As the adoption of smartphones and the Internet has increased over the last decade, so has the number of...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This