Yesterday’s big story was the FTC hitting Facebook with a record $5 billion fine following countless private information handling scandals. But markets appeared happy with the fine, sending the market-cap of Facebook up by more than $10 billion, completely negating the punitive action.
Techspot revealed yesterday that a $5 billion fine was levied on Facebook by the Federal Trade Commission (FTC) as a penalty for a string of violations, scandals and disputes.
A $5 billion fine would be enormous in almost any other sense–not only as a punitive measure, but also in signaling how badly the company in question had behaved. But Facebook’s $5 billion is little more than a slap on the wrist, considering its size, reach, and value. So much so that the stock price of the social media giant grew by 1.81 percent following news of the FTC’s ruling, adding $10.4 billion to their business valuation.