In the face of uncounted privacy breaches and scandals, Facebook has set aside $3 billion, predicting a record fine which might be coming from the US Federal Trade Commission. The possible amount of fine was first reported by a leading daily in February and it’s mostly associated with the Cambridge Analytica scandal. The Cambridge Analytica scandal came to the limelight last year in March and from that time it became a never-ending series o security breaches and leak of passwords or user’s personal information from Facebook’s end.
In a post, the company mentioned their first-quarter earnings for 2019, which underlined their ongoing monthly and the daily active user is on the rise and a 26% increase in year-over-year sales, up to $15.1 billion and ahead of Wall Street assumptions. However, Facebook also stated that it is keeping aside $3 billion (£2.3 billion), or roughly 6% of its cash and marketable securities on hand, in order to cover the FTC fine, which is going to come very soon or by late this year. Facebook’s CEO stated that they experienced a good quarter and their business is growing. He added that they are focused on building a privacy-focused vision for the future of social networking and working jointly to address crucial issues around the Internet.
However, even a record-setting FTC fine doesn’t seem to have any significant effect on Facebook’s business. The company even earned $2.4 billion in profit for the quarter, and with the money now kept aside for the fine, CEO Mark Zuckerberg can restart business as usual. More importantly, Zuckerberg would be focusing on his plan, i.e. transition of the company from public sharing towards ephemeral, private messaging, a shift that has yet had any impact on Facebook’s business and won’t for quite some time.