Facebook CEO Mark Zuckerberg. Photo by Bloomberg
News Analysis
Policy Facebook

FTC Deal with Facebook Sparks Skepticism

Photo: Facebook CEO Mark Zuckerberg. Photo by Bloomberg

Facebook and the Federal Trade Commission had a consistent message about the privacy settlement they announced Wednesday: It was a historic deal that will significantly change how the social media company conducts itself in the future. 

Both parties have a lot of persuading to do to convince critics. 

While the $5 billion fine Facebook agreed to pay amounts to little more than a pinprick for the company, Facebook agreed to adopt a handful of changes that take aim at what the FTC called the “unfettered control” that CEO Mark Zuckerberg has over the privacy of its users. But those new requirements—including a new privacy board that will have to oversee company compliance with the new privacy standards—were immediately greeted by scorching criticism from Facebook skeptics who had hoped for much stiffer penalties. The terms also sparked concern that the settlement could even help Facebook strengthen its iron grip on the social media market.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
The Briefing
Uber Finally Hits $90 Billion Market Cap; The Information’s Tech Briefing
Uber Finally Hits $90 Billion Market Cap; The Information’s Tech Briefing
Most major tech stocks rallied with the rest of the stock market on Tuesday, as the Dow Jones Industrial Average passed the 30,000 mark for the first time. Some tech stocks hit highs nearly as symbolic as the Dow’s closing level. Uber, for instance, rose 2.4% to $51.26, its highest price ever and putting its market capitalization at $90 billion. That was the top end of its expected IPO...
Latest Briefs
 
Sequoia Capital Led $2 Billion SpaceX Financing
HP Inc. Shares Jump 9% as PC, Printer Sales Surge
TikTok Sues Rival Triller for Violating Patents
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Alphabet’s Internet Balloon Subsidiary ‘Loon’ Hit Financing Turbulence
Exclusive Startups Google
Alphabet’s Internet Balloon Subsidiary ‘Loon’ Hit Financing Turbulence
Doubts are growing about one of the first and most high-profile efforts by Google owner Alphabet to show that it can be more than an advertising cash machine.
Tech CEOs Are Saying Goodbye to San Francisco
Exclusive Real Estate Economy
Tech CEOs Are Saying Goodbye to San Francisco
Splunk, Dropbox and Brex followed similar formulas as they grew from small startups to established companies.
Job Site Hired, Once Valued at $500 Million, Discusses Winding Down
Exclusive
Job Site Hired, Once Valued at $500 Million, Discusses Winding Down
Hired, a recruitment service for tech jobs, has started a process to sell assets, pay off creditors and wind down the company, according to people familiar with the plans and a document seen by The Information.
Microsoft’s New Weapon in Console Wars: a ‘Netflix for Games’
Microsoft Media/Telecom
Microsoft’s New Weapon in Console Wars: a ‘Netflix for Games’
Last week, Microsoft and Sony kicked off a new round of game console wars, releasing new machines likely to be among the most sought-after gifts this holiday season.
Why Silicon Valley Loves Airbnb—for Now
The Takeaway
Why Silicon Valley Loves Airbnb—for Now
This week you saw something you don’t often see: goodwill for a tech company. Maybe it was a reaction to the endless years of lashing out against tech CEOs on Twitter, often coming from other tech CEOs themselves.
Airbnb’s Chesky Takes Far Lower Salary Than Most Tech CEOs at IPO
Data Point Markets
Airbnb’s Chesky Takes Far Lower Salary Than Most Tech CEOs at IPO
Airbnb has distinguished itself on a number of grounds, including the innovative nature of its business model and its ability to turn a profit, at least for a period of time.