Facebook, leading social networking company in the world, has been faced with a massive fine of $5 billion by US Federal Trade Commission (FTC). The Tech giant, which's under probe for privacy violations, has been levied with a $ 5 billion (INR 34,000 Cr) to settle the investigation. The FTC commission has approved the settlement with 3-2 vote - republicans in support and democrats in opposition. This is the highest penalty for any global company by FTC and this settlement has to be approved by Justice Department's Civil division.
In the past, Facebook has faced security breach accusations and in 2011, the company settled the issue with Federal Trade Commission. Freshly, the Cambridge Analytica issus has put Facebook back in trouble and FTC has reopened the case on Facebook last year. As part of this settlement, Facebook has been fined heavily and also FTC levied additional restrictions on the company.
The company has made itself ready to pay a huge penalty and earlier this year, estimated that they will have to shell out $ 3-5 billion in the form of fine. But, this development has led to collapse of Facebook share price by 1.8%.