Facebook is likely to face an extra scrutiny by the Federal regulators. This is because of the fact that it had provided users’ data more than the limit that it was supposed to give to the companies. On December 25th, 2018, New York Times have mentioned about Facebook revealing users’ data with over 150 companies which consisted of many big tech firms. Netflix and Spotify were given permission and unlimited access to the inbox messages of Facebook users and Bing, the search engine for Microsoft was given the permission to check the names of all the users’ friends in a virtual way without consent.
This violation can cost Facebook a big mark on its reputation as it might have broken a consent agreement made in 2011 between Facebook and FTC (Federal Trade Commission). The agreement would require Facebook to seek permission from its users before sharing their private data and to maintain an all-encompassing program regarding privacy. However, this incident is definitely against what they had committed. Facebook, on the other hand, defended itself saying that all the partnerships that gave access to users’ information were all with permission and that they have not violated any agreement of the past.
Facebook has also claimed that the agreement never had any point on seeking external permission. Also, the data being shared was with partner platforms as Facebook regards them as part of social network which are used by people to contact with their Facebook’s list of friends. After the report, the stocks of Facebook have fallen by 6%. With this new breach in privacy, FTC officials believe that Facebook has done enough violations of privacy. FTC has also declared that if proven of the violation, the company will have to face a large amount of fine that will figure in billions.