They’re still making money, but it’ll be a huge dent.
Facebook has had a bumpy ride recent of late. And while most of that hasn’t done much to hurt their business, that’s not to say they’re getting out of it all scratch-free. Specifically, their Q1 2019 report mentions that they estimate spending between $3-5 billion on FTC fines.
In the first quarter of 2019, we reasonably estimated a probable loss and recorded an accrual of $3.0 billion in connection with the inquiry of the FTC into our platform and user data practices, which accrual is included in accrued expenses and other current liabilities on our condensed consolidated balance sheet. We estimate that the range of loss in this matter is $3.0 billion to $5.0 billion. The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome.
This essentially drops their net profit this year by half compared to last year. The fine in question is a record setter; the largest ever doled out to a company.
Source: Engadget
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