Recently, Facebook has been in fierce scrutiny all over the world for its privacy issues. Right now, it is the world’s second-biggest seller of online ads. Last Wednesday, Facebook reached a settlement of US $ 550 million (which is roughly INR 3900 crores) in principle related to a lawsuit. The lawsuit claimed that Facebook illegally collects stores biometric data of millions of users without their consent.
Just to let you know, the lawsuit began back in 2015, when Illinois users accused Facebook to violate the Biometric Information Privacy Act in collecting biometric data. Allegedly, the company accomplished this with its “Tag Suggestions” feature which allows users to recognize their Facebook friends from previously uploaded photos.
Robbins Geller and Labaton Sucharow of Edelson law firm said the plaintiffs will ask the district court to give preliminary approval for the settlement. A few months back, Facebook reported its slowest ever revenue growth for the fourth quarter.
Interestingly, the growth rate was at 25 percent which is more than fair value. Facebook’s chief financial officer, David Wehner said on a call with investors that the pace of expansion will slow further in the first quarter of 2020. He predicted a decline in percentage point in the growth rate in the low to mid-single digits.
Facebook is also facing heat over how its services have been manipulated to spread misinformation. It seems that the company has taken a few blows one after another recently.
However, most of these issues were addressed since mid-2018 for which its expenses surged by more than 100 percent for several quarters.
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Via – TechCrunch