WASHINGTON: The Federal Trade Commission is set to announce on Wednesday that Facebook Inc. has agreed to a sweeping settlement of significant allegations it mishandled user privacy and pay $5 billion, two people briefed on the matter said.
As part of the settlement, Facebook will agree to create a board committee on privacy and will agree to new executive certifications that users’ privacy is being properly protected, the people said.
Facebook Chief Executive Mark Zuckerberg will have to certify every three months that the company is properly safeguarding user privacy, a person briefed on the matter said.
The Washington Post reported on Tuesday that the FTC will allege Facebook misled users about its handling of their phone numbers and its use of two-factor authentication as part of a wide-ranging complaint that accompanies a settlement ending the government’s privacy probe, citing two people familiar with the matter.
Separately, the US Securities and Exchange Commission is expected to announce a related settlement with Facebook for around $100 million over allegations it failed to disclose risks to investors over its privacy practices. The Wall Street Journal reported the SEC settlement earlier.
The Post also reported the FTC also plans to allege Facebook provided insufficient information to about 30 million users about a facial recognition tool, an issue identified earlier by Consumer Reports.
The settlement comes amid growing concern among US policymakers about the privacy of online users and have sparked calls for new legal protections in Congress. Separately, the US Justice Department said late Tuesday it is launching a broad antitrust probe into the competitive practices of large tech companies like Facebook.
Two people briefed on the matter confirmed the Post report the FTC will not require Facebook to admit guilt as part of the settlement. The settlement will need to be approved by a federal judge and will contain other significant allegations of privacy lapses, the people said.
The fine will mark the largest civil penalty ever paid to the FTC.
The FTC and Facebook declined to comment.
The FTC confirmed in March 2018 it had opened an investigation into allegations Facebook inappropriately shared information belonging to 87 million users with the now-defunct British political consulting firm Cambridge Analytica. The probe has focused on whether the data sharing violated a 2011 consent agreement between Facebook and the regulator and then widened to include other privacy allegations.
A person briefed on the matter said the phone number, facial recognition and two-factor authentication issues were not part of the initial Cambridge Analytica probe.
Some in Congress have criticized the reported $5 billion penalty, noting Facebook in 2018 had $55.8 billion in revenue and $22.1 billion in net income. Senator Marsha Blackburn, a Republican, said last week the fine should be $50 billion.
While the deal resolves a major regulatory headache for Facebook, the Silicon Valley firm still faces further potential antitrust probes as the FTC and Justice Department undertake a wide-ranging review of competition among the biggest US tech companies. Facebook is also facing public criticism from President Donald Trump and others about its planned cryptocurrency Libra over concerns about privacy and money laundering.
The Cambridge Analytica missteps, as well as anger over hate speech and misinformation on its platform, have prompted calls from people ranging from presidential candidate Senator Elizabeth Warren to a Facebook co-founder, Chris Hughes, for the government to force the social media giant to sell Instagram, which it bought in 2012, and WhatsApp, purchased in 2014.
But the company’s core business has proven resilient, as Facebook blew past earnings estimates in the past two quarters. Facebook is set to report earnings on Wednesday.
Facebook to create privacy panel, pay $5bn to US to settle allegations
Facebook to create privacy panel, pay $5bn to US to settle allegations
- As part of the settlement, Facebook will agree to create a board committee on privacy
- It will also agree to new executive certifications that users’ privacy is being properly protected
BBC slammed for ‘shameful’ cut to ‘free Palestine’ comment at BAFTA Awards
- Broadcaster removes from broadcast part of filmmaker Akinola Davies Jr.’s acceptance speech at the British Academy Film Awards
- Amnesty UK praises filmmaker for speaking up for those ‘facing and fleeing from persecution and mass atrocities’
LONDON: The BBC was accused on Monday of a “shameful” decision after it cut part of an acceptance speech at the previous night’s British Academy Film Awards in which a filmmaker uttered the phrase “free Palestine.”
British-Nigerian director and co-writer Akinola Davies Jr. and his brother, co-writer Wale Davies were collecting the award for outstanding debut by a British writer, director or producer for their film “My Father’s Shadow” when the former made the comment.
The BBC chose not to include the final part of his speech when it broadcast the BAFTAs ceremony later in the evening. However, the corporation did broadcast an inadvertent racist slur shouted by a person with Tourette syndrome while Black actors Michael B. Jordan and Delroy Lindo were presenting an award.
Akinola thanked industry figures and family for their support as he accepted the award, before dedicating it to “all those whose parents migrated to obtain a better life for their children.”
In the final part of his speech, cut by the BBC, he said: “To the economic migrant, the conflict migrant, those under occupation, dictatorship, persecution and those experiencing genocide, you matter and your stories matter more than ever.
“Your dreams are an act of resistance. To those watching at home, archive your loved ones, archive your stories yesterday, today and forever. For Nigeria, for London, Congo, Sudan, free Palestine. Thank you.”
The BBC, which broadcast the ceremony with a two-hour time delay, said the cut was made for timing reasons.
A spokesperson told Deadline: “The live event is three hours, and it has to be reduced to two hours for its on-air slot. The same happened to other speeches made during the night, and all edits were made to ensure the program was delivered to time. All winners’ speeches will be available to watch via BAFTA’s YouTube Channel.”
Human rights campaign group Amnesty UK described the decision by the BBC to cut part of the speech as “shameful.”
It added: “Thank you Akinola Davies Jr. for using your platform to speak out for the rights of migrants and people facing and fleeing from persecution and mass atrocities, from the Congo to Sudan to Palestine.”
In June last year, the BBC was at the center of a row after it broadcast a Glastonbury Festival performance by the duo Bob Vylan, during which the lead singer chanted “death to the IDF” in protest against the Israeli Defense Forces’ assault on Gaza.
