Facebook’s $5B FTC fine is an embarrassing joke(theverge.com)
theverge.com
Facebook’s $5B FTC fine is an embarrassing joke
https://www.theverge.com/2019/7/12/20692524/facebook-five-billion-ftc-fine-embarrassing-joke
10 comments
I don’t see how people are concluding it’s a slap on the wrist that won’t change their behavior. FB is basically just guilty of lax security practices. The fine doesn’t need to be a large percentage of their total revenue to affect change. It just has to be more than the cost of investing in better security practices. Its not like Cambridge Analytica and the other data leaks made any profits for them.
>Here’s another way to say it: the biggest FTC fine in United States history increased Mark Zuckerberg’s net worth.
What a garbage conclusion. The article even draws attention to the market being aware of an upcoming fine, and makes no argument for Zuckerberg's net worth being higher than if this fine was never on the table.
What a garbage conclusion. The article even draws attention to the market being aware of an upcoming fine, and makes no argument for Zuckerberg's net worth being higher than if this fine was never on the table.
The fact that the stock went up doesn’t necessarily mean the $5B is too small. That is a naive understanding of stock valuations. It could go up just because the uncertainty is now removed.
Key points:
- This is the largest FTC fine in history
- It's 1 month's revenue for Facebook
- After news broke, Facebook's stock went up
- This is the largest FTC fine in history
- It's 1 month's revenue for Facebook
- After news broke, Facebook's stock went up
It's also still not clear to me what the fine was for. What did Facebook do incorrectly and what law did they break?
Facebook gave away user data without permission, the very same thing it continuously promised to not do. Now that they know where the bar is placed, I am sure they will up the ante..
Just the price of doing crooked business.
Just the price of doing crooked business.
No. I'd like to know on a technical level what was done. Anyone can scrape this information on users, they're friends and so on asking as persons made it public. The government does this at scale
Of course their stock went up, stockholders continue to be shocked at just how little backlash there is from the US Government.
Sometimes I think we forget how greedy people become in our country, and how that perpetuates inadequate justice in cases such as this or the many bank-related catastrophes in the past few years.
Sometimes I think we forget how greedy people become in our country, and how that perpetuates inadequate justice in cases such as this or the many bank-related catastrophes in the past few years.
There are probably a lot of people at Facebook who work on things that are worth less than $5 billion. As a motivating factor in some manager or lawyer's PowerPoint presentation arguing for a new company initiative, it seems like this will be a pretty good argument?
The stock has taken a beating over the past 6 months. Its a classic buy the rumor sell the fact, but in reverse.