4 ms·

$5B is pennies to FB

saltedonion 5y ago
Not sure why you’re downvoted. But sadly this is true. Fb knows it is financially better off to pay the fine than change their operations. It just goes to show how capitalistic the US really is and how tolerant this country is towards unprecedented market power. No way it will fly in the EU. And that is why there is no FB in the EU.
- chillacy 5y ago
  The $5B fine comes with a lot of enforced changes to the company's operations: https://www.ftc.gov/news-events/press-releases/2019/07/ftc-imposes-5-billion-penalty-sweeping-new-privacy-restrictions https://www.ftc.gov/news-events/press-releases/2019/07/ftc-i... Though it does tend to have fewer regulations than the EU, the claim that this settlement has resulted in no operational changes does not appear to be true.
  - nielsbot 5y ago
    I read the linked PR--I am curious to see if these restrictions really protect consumers. My cynical side imagines these restrictions were written with input from FB and that they will find ways around them. But I'm cautiously hopeful.
    - andylynch 5y ago
      There was almost certainly some negotiation- it’s a voluntary agreement. But if they can’t or won’t hold themselves to it the FTC and the courts can and will enforce it and that 5B could easily become far bigger.
spywaregorilla 5y ago
No it isn't. People make arbitrary statements like this all the time when talking about big numbers and they often do not make sense. $5B is ~1/6 of their net income and a bit more than 5% of their revenue. That is a large number. It's not a death sentence, but it is a big hit.
- nielsbot 5y ago
  Metaphorical pennies. I don't see how a 1 time charge of 1/6 of one year's net income is that big of a charge. Make it a whole year of profit and now you're talking.
  - spywaregorilla 5y ago
    $5B is more than the purchase price of Oculus and multiple years of VR content investment.
    - nielsbot 5y ago
      The price of these acquisitions isn't relevant to the amount of "pain" this fine does or does not inflict on FB.
      - spywaregorilla 5y ago
        In terms of trying to rationalize how much $5B matters to them I think this is a perfectly reasonable comparison.

Not sure why you’re downvoted. But sadly this is true. Fb knows it is financially better off to pay the fine than change their operations. It just goes to show how capitalistic the US really is and how tolerant this country is towards unprecedented market power. No way it will fly in the EU. And that is why there is no FB in the EU.

chillacy 5y ago
The $5B fine comes with a lot of enforced changes to the company's operations: https://www.ftc.gov/news-events/press-releases/2019/07/ftc-imposes-5-billion-penalty-sweeping-new-privacy-restrictions https://www.ftc.gov/news-events/press-releases/2019/07/ftc-i... Though it does tend to have fewer regulations than the EU, the claim that this settlement has resulted in no operational changes does not appear to be true.
- nielsbot 5y ago
  I read the linked PR--I am curious to see if these restrictions really protect consumers. My cynical side imagines these restrictions were written with input from FB and that they will find ways around them. But I'm cautiously hopeful.
  - andylynch 5y ago
    There was almost certainly some negotiation- it’s a voluntary agreement. But if they can’t or won’t hold themselves to it the FTC and the courts can and will enforce it and that 5B could easily become far bigger.

spywaregorilla 5y ago

No it isn't. People make arbitrary statements like this all the time when talking about big numbers and they often do not make sense. $5B is ~1/6 of their net income and a bit more than 5% of their revenue. That is a large number. It's not a death sentence, but it is a big hit.

nielsbot 5y ago
Metaphorical pennies. I don't see how a 1 time charge of 1/6 of one year's net income is that big of a charge. Make it a whole year of profit and now you're talking.
- spywaregorilla 5y ago
  $5B is more than the purchase price of Oculus and multiple years of VR content investment.
  - nielsbot 5y ago
    The price of these acquisitions isn't relevant to the amount of "pain" this fine does or does not inflict on FB.
    - spywaregorilla 5y ago
      In terms of trying to rationalize how much $5B matters to them I think this is a perfectly reasonable comparison.