Facebook Sets Aside $3 Billion For a Potential FTC Fine

An anonymous reader quotes a report from ABC News: Facebook is taking a $3 billion charge as a contingency against a possible fine by the Federal Trade Commission. The agency has been investigating Facebook, but has not announced any findings yet. The one-time charge slashes Facebook's first-quarter net income considerably, although revenue grew by 25% in the period. The FTC has been looking into whether Facebook is in violation of a 2011 agreement promising to protect user privacy.

The social network said Wednesday that its net income was 85 cents per share in the January-March period. Revenue grew 26 % to $15.08 billion from a year earlier. Excluding the charge, it earned $1.89 per share. Analysts polled by FactSet expected earnings of $1.62 per share and revenue of $14.98 billion. Facebook's monthly user base grew 8% to 2.38 billion. According to The New York Times, Facebook says it's expected to be fined up to $5 billion for privacy violations, including improper handling of people's data involving Cambridge Analytica, as well as a major data breach.

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