Facebook (FB) can’t seem to catch a break.
After a brief rebound, shares of the social networking giant were down 2% on a report the company uncovered emails that link CEO Mark Zuckerberg to Facebook’s controversial privacy practices. Allegedly, the e-mails raised questions about how the company was sharing data with third-party developers, suggesting he knew of potential issues.
If that’s the case, the company could come under further scrutiny from the U.S. FTC.
However, according to the company, as quoted by CNBC, “We have fully cooperated with the FTC’s investigation to date and provided tens of thousands of documents, emails and files. We are continuing to work with them and hope to bring this matter to an appropriate resolution. Facebook and its executives, including Mark, at all times strive to comply with all applicable law, and at no point did Mark or any other Facebook employee knowingly violate the company’s obligations under the FTC consent order.”
Of course, Facebook is eager to strike a deal with the FTC and put this to bed.
In April 2019, the company already noted it was expecting to pay up to $5 billion to do so.
While such a fine would be a record for the FTC, the agency is coming under pressure from lawmakers, according to The Wall Street Journal, to take further punitive measures since $5 billion would inflict little pain to Facebook.
This isn’t the Only Investigation into Facebook
Just the other week, Facebook also took a hit on a Wall Street Journal report that the U.S. FTC will be able to examine the effect of FB company practices on digital competition.
“The FTC secured the rights to begin a potential investigation of Facebook and whether it has engaged in unlawful monopolistic practices as part of an agreement that allowed the Justice Department to take the reins in a Google probe, according to people familiar with the matter. The FTC and Justice Department share authority to enforce U.S. antitrust law and at times must work out turf arrangements regarding which agency will handle what issues,” they noted.