The fallout from the Cambridge Analytica scandal could be about to cost Facebook dear, with reports the social network is in the process of negotiating a multibillion-dollar settlement with the US Federal Trade Commission (FTC) over privacy lapses.
The significant sum would serve as punishment for the Cambridge Analytica furore in which Facebook was revealed to have inappropriately shared information on 87 million users with the political data firm.
Reports in the Washington Post make clear that no agreed amount has yet been decided upon. However, it's believed the figure could stretch into multiple billions, eating into the $6.9bn profit the tech firm reported over the fourth quarter.
Facebook could also be forced to implement operational changes to prevent a repeat occurrence.
At issue is the suspicion Facebook breached the terms of a 2011 agreement with the FTC to safeguard the privacy of its users.
The fine would mark the first financial penalty for Facebook in the US since the Cambridge Analytica scandal came to light last March. It’s already been fined by the Information Commissioner (ICO) in the UK, which it is in the process of appealing.