Facebook to pay civil penalty of $5 bn to settle allegations by US FTC

A 3D plastic representation of the Facebook logo is seen in this illustration in Zenica, Bosnia and Herzegovina, May 13, 2015. REUTERS/Dado Ruvic/Files

International News

The Federal Trade Commission (FTC) 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.
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....Read More

Future of communication is encrypted, private messaging: Mark Zuckerberg

Companies News

Facebook Inc Chief Executive Mark Zuckerberg said on Wednesday the company would encrypt conversations on more of its messaging services and make them compatible, the latest sign that the world's biggest social network sees its future in intimate online chats.

Zuckerberg said in a post on his Facebook profile that within a few years direct messaging would dwarf discussion on the traditional, open platform of Facebook's news feed, where public posts can go viral across the world.

"Working towards implementing end-to-end encryption for all private communications is the right thing to do," Zuckerberg said. He cautioned that details of the plan could change as the company consults experts throughout 2019.

The strategy could frustrate law enforcement surveillance efforts as well as lawmakers who have called on Facebook to better moderate user content. It also would limit the company's ability to generate revenue through targeted ads.

But Zuckerberg said he could live with those tradeoffs because users want better control of their data while still having easy access to their contacts.

As part of Zuckerberg's strategy, a Facebook user would be able to communicate with WhatsApp users while only having a Messenger account and vice versa. Users would also have more options for how long chats are saved, he added.


 "The future of communication will increasingly shift to private, encrypted services where people can be confident what they say to each other stays secure and their messages and content won't stick around forever," he said...Read More