Facebook sets US$3bn aside for anticipated fine, as it seeks to become a more private platform
Facebook’s financial results for the first quarter of the 2019 calendar year show the social media giant is setting aside US$3bn for the anticipated costs of the US Federal Trade Commission’s investigation into its platform and data processes. The social media giant also conceded that as the matter is unresolved “there can be no assurance as to the timing or the terms of any final outcome”. It estimates the loss from the matter will cost the company between US$3bn and US$5bn.
Founder and CEO Mark Zuckerberg also used the call with investors to deny the company uses content from messages sent between people on its platform to target them with relevant advertising, and flagged the challenges and “trade offs” of making its platform more private and secure.
Zuckerberg testifying before congress last year
In the financial results to investors, Zuckerberg issued a short statement.
Perhaps this line item needed further ellaboration:
“Its total costs and expenses – including the US$3bn legal bill – were up 80% to US$11.76bn”