Zuckerberg loves it! ❤️
On Wednesday, the Federal Trade Commission (FTC) slapped a penalty of ₹35,000 Crore on FB. It is the largest fine in the history of FTC and for reference, you should know that it is higher than the total annual budget allocated to several states in India.
Why is FB being fined?
In 2018, Cambridge Analytica (a British political consulting firm) paid FB ₹6.9 Crore to harvest the personal data of 8.7 crore users via a Personality Quiz. This data was then used for political advertisements without users consent and reportedly, it had a major effect on changing public opinion before elections in several countries (including India & US).
Here’s where it gets interesting
Ironically, FB’s stock prices climbed up as soon as the penalty was declared because analysts were expecting a much larger fine given the severity of the scandal.
What we think 🧠
FTC’s actions may not be a ‘lesson learnt’ for a really powerful company that has a huge pile of cash at its disposal (₹3 lakh crores in Jan 2019) and an income base that will allow it to regenerate the ₹34,000 crore it pays as fine in just 49 days. This could’ve been an opportunity to teach tech companies (that illegally sell user data) a lesson, but now, we wouldn’t be surprised if similar practices persisted as we walk towards our digital future.