Facebook has just been slapped with a record fine for privacy violations, but its regulatory headaches are far from over.
He revealed Wednesday that he also faces an antitrust investigation by the Federal Trade Commission. The disclosure came in the middle of Facebook's second quarter earnings report, which came just hours after the details of its $ 5 billion deal with the FTC were revealed.
"In June 2019, the FTC informed us that it had opened an antitrust investigation of our company," The company said in a statement.
That marks the second federal antitrust investigation in the social media company. The Department of Justice is also conducting an antitrust review of several of the leading technology companies.
Previously, he announced that he had reached an agreement with the FTC as a result of his long research on the privacy practices of the social network.
As part of the agreement, Facebook agreed to pay a fine of 5 billion dollars and create a "Independent privacy committee". And the Securities and Exchange Committee revealed that Facebook would pay a fine of 100 million dollars as a result of privacy violations related to Cambridge Analytica.
But these investigations and fines
They have done little to affect the company's results. Facebook reported 16.9 billion dollars in revenue, above analyst expectations. Daily active Facebook users (DAU) also increased to 1.59 billion.
Although it may not always be the case. Facebook CFO Dave Wehner warned that Facebook's revenue growth could slow down during the fourth quarter of 2019 and until 2020 because "The ads point to winds against."
Specifically, Wehner cited privacy regulation as GDPR, changes in the "operating system" (presumably, a reference to Apple's ad tracking features) and the general change from Facebook to privacy.
It is clear that the Facebook FTC billionaire fine is more a minor obstacle than a major obstacle, despite Mark Zuckerberg's insistence that the new rules will slow down the company.
"Good news about the FTC agreement," An analyst said during the company's earnings call.