FTC hits Facebook with $5 billion fine and new privacy checks
The Federal Trade Commission revealed the details of Facebook on Wednesday, saying it added new restrictions to the way the tech giant handles user data in hopes it will “change Facebook’s entire privacy culture.”
Shares of Facebook were down slightly following the announcement, but turned positive in the afternoon, up about a percent.
Facebook recouped more than what it will have to pay out for the settlement through what it gained in market value on Wednesday.
The stock added more than $5 billion to its market cap to bring it over $583 billion.
The 20-year agreement orders Facebook to restructure the way it handles user privacy—including changes at the board level and in the way the company will handle relationships with third-party developers.
The settlement also establishes new guidelines for how the company will be held accountable for future privacy violations.