Facebook said it expects a fine of up to $5 billion from the Federal Trade Commission, which is investigating whether the social network violated its users' privacy.
The company set aside $3 billion in its quarterly earnings report Wednesday as a contingency against the possible penalty but noted that the "matter remains unresolved."
Investors shrugged off the charge and sent the company's stock up nearly 5% to $190.89 in after-hours trading. EMarketer analyst Debra Aho Williamson, however, called it a "significant development" and noted that any settlement is likely to go beyond a mere dollar amount. Facebook has had several high-profile privacy lapses in the past couple of years. The FTC has been looking into Facebook's involvement with the data-mining firm Cambridge Analytica scandal since last March. That company accessed the data of as many as 87 million Facebook users without their consent.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ousted Nissan chairman Carlos Ghosn indicted for fourth time, lawyer requests bailOusted Nissan chairman Carlos Ghosn indicted for fourth time, lawyer requests bail GlobeBusiness
Read more »
Instagram growth boosts Facebook revenue, but potential privacy penalty loomsThe company warned it could face up to $5 billion in losses related to an official U.S. privacy investigation
Read more »
Facebook takes $3-billion charge as contingency against possible FTC fineThe one-time charge slashes Facebook’s first-quarter net income considerably, although revenue grew by 25 per cent
Read more »
Instagram growth boosts Facebook revenue, but potential privacy penalty loomsThe company warned it could face up to $5 billion in losses related to an official U.S. privacy investigation
Read more »
Duchene, Lehner among pending free agents upping value in playoffs - Sportsnet.caWe looked at some players on expiring contracts whose performances early on this post-season could do wonders for the value of their next deal.
Read more »
Supermarket owner upset with $10,000 fine threat for opening on Good FridayThe owner of a supermarket chain in Winnipeg says he plans to push the province for change after opening his stores on Good Friday led to him being threatened with a $10,000-per-store fine.
Read more »
Nets GM Sean Marks fined, suspended for entering referees' locker room - Sportsnet.caNets general manager Sean Marks has been suspended one game without pay and fined $25,000 for entering the referees' locker room after Brooklyn's loss to Philadelphia in Game 4.
Read more »
DeRozan fined for throwing ball toward official - TSN.caSan Antonio Spurs guard DeMar DeRozan has been fined $25,000 for 'recklessly throwing the basketball toward a game official and into the spectator stands,' the league announced on Sunday.
Read more »
Spurs' DeMar DeRozan fined for throwing ball towards official - Sportsnet.caSan Antonio Spurs guard DeMar DeRozan has been fined $25,000 for throwing a basketball towards an official.
Read more »
Sahotas fined for SRO violations, but punishment could have been worseThe Sahotas – three siblings who together own properties including SRO hotels, apartment blocks and houses worth an estimated $218-million at the time of a Globe and Mail investigation last year – agreed to pay a fine of $150,000 and donate $25,000 to two local charities
Read more »
Nets GM fined $25K, suspended for entering refs' locker roomNets general manager Sean Marks was suspended one game without pay and fined $25,000 by the NBA on Sunday for entering the referees' locker room after Brooklyn's loss to Philadelphia in Game 4 of their playoff series.
Read more »