Facebook sets aside $3 billion in expectation of FTC fine, user numbers continue to grow

[midian182]

What just happened? Facebook’s seemingly never-ending privacy and data scandals have finally hit it in the wallet, but it’s not through users leaving. During its Q1 2019 earnings report, the social network said it estimates spending between $3 billion to $5 billion on a fine from the Federal Trade Commission (FTC) over its user data practices.

Facebook has set aside $3 billion in anticipation of the FTC fine, meaning its net profit was 85 cents per share. Without the legal expense, profit would have been $5.43 billion, or $1.89 a share. Revenue was at $15.08 billion, while average revenue per user hit $6.42, up 16 percent compared to last year, beating analysts’ expectations.

Speaking about the fine, which is mostly related to the Cambridge Analytica scandal, Facebook said: "The matter remains unresolved and there can be no assurance as to the timing or the terms of any final outcome."

Despite the numerous cases of exposed data and privacy issues, Facebook continues to experience user growth. The site had 2.38 billion monthly active users in Q1 2019, a jump of 8 percent year-over-year. Daily active users were also up 8 percent YoY, reaching 1.56 billion.

Mobile continues to bring in the money for Facebook, with 93 percent of all advertising revenue ($13.9 billion) coming from its mobile apps. Total Q1 ad revenue was $14.9 billion, up 26 percent YoY.

On the earnings report conference call, Mark Zuckerberg once again talked about Facebook’s supposed privacy-focused future, along with plans to integrate the messaging services of Instagram, WhatsApp, Messenger, and the main app, allowing users to communicate with each other across these services easily.

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https://www.techspot.com/news/79800-facebook-sets-aside-3-billion-expectation-ftc-fine.html

 

[ShagnWagn]

Great, then let's increase the fine to $30 billion. They will just double the amount of ads to 4 in a row than 2 in a row. I have used it significantly less because of the ad spamming.

"it’s not through users leaving"

Why do users continue to use it/create new accounts? Because they don't know. If facebook were to post a mandatory notice, then they would see a steep dropoff.

 

[wiyosaya]

Great, then let's increase the fine to $30 billion. They will just double the amount of ads to 4 in a row than 2 in a row. I have used it significantly less because of the ad spamming.

"it’s not through users leaving"

Why do users continue to use it/create new accounts? Because they don't know. If facebook were to post a mandatory notice, then they would see a steep dropoff.

Warning: The Surgeon General has determined fakebook is hazardous to your health.
Sounds about right!

Seriously, people must be isolated to not realize that there are grave privacy concerns in having a fakebook account these days. Either that, or they simply do not care.

I agree with having a much larger fine. The only way for fakebook to contain itself seems to be through fines that are large enough that the company will notice.

Given the article on the crApple CEO wanting regulation, these companies are not going to regulate themselves. They are doing what they are doing just because they can and, for them, it means higher profits. It seems they do not care about the effects it has on their users; that fact, to me at least, just goes to show that they are parasites and a blight on society.

 

[Uncle Al]

I suspect that a majority of those "new accounts" might be from those previously banned, IE: scammers and trolls as well as politically motivated units that will again be banned once their source is discovered. Facebook is ripe for a government intervention and the fact that it's owner consistently ignores the authorities, he should be ripe for arrest and conviction .... While users might claim freedom of speech, there is no freedom of deception on the books ......

 

[Evernessince]

I suspect that a majority of those "new accounts" might be from those previously banned, IE: scammers and trolls as well as politically motivated units that will again be banned once their source is discovered. Facebook is ripe for a government intervention and the fact that it's owner consistently ignores the authorities, he should be ripe for arrest and conviction .... While users might claim freedom of speech, there is no freedom of deception on the books ......

Individuals in a corporation are largely shielded from criminal prosecution unfortunately.

 

[wiyosaya]

Individuals in a corporation are largely shielded from criminal prosecution unfortunately.

Maybe so, but they can be held liable when there is outright fraud or worse.