Name: Insights: Facebook’s $5 Billion Settlement Won’t Make It Care More About User Data
Uploaded: 2020-02-13
Duration: 2 min 29 s
Description: So what will? (October 2019)

 LISA MARIE SEGARRA: Welcome to Fortune Tech Debate where we discuss the issues of the day in two minutes. Today, we're talking about Facebook and what it will take to make them take user data seriously. So the FTC recently came to a settlement with Facebook for $5 billion-- sounds like a lot, and it is a lot of money-- but for Facebook, it ended up being more of a slap on the wrist. What's it going to take for them to take this issue seriously finally? DAVID Z. MORRIS: Yeah, they got a $5 billion fine and their stock went up. There was sort of universal dismissal that this is not a real enforcement action. And the FTC chief said, we need better rules. We're just an enforcement body, we can't make the rules. So it comes back to we need legislation and regulation that provides specific guidelines for Facebook and other data handlers to know what they're supposed to do. I don't think that's the thing that's missing from Facebook, but anyway, that's what is going to fix this. LISA MARIE SEGARRA: I agree with you in theory, regulation sounds great-- something that will really hold them accountable. But as we saw in their hearing with Mark Zuckerberg, they really don't know what they're talking about. They just had no concept to not just have Facebook work, but Twitter, just social media and the internet in general. I don't really have faith that Congress will be able to put laws on the books that are more than symbolic and actually make a meaningful difference. DAVID Z. MORRIS: Well, symbolic would be a start. But I will say, I think that they've-- I hope that they've come some distance since the infamous whistle ads senator hearing. But second, there's a lot of bipartisan shared skepticism of Facebook. And I think that Democrats and Republicans, for different reasons, they don't trust the company and they think they sort of see the systemic problem. So I have some faith that there could be some healing-- or maybe Facebook is what we need to bridge the partisan divide in this country, is our shared skepticism. LISA MARIE SEGARRA: I have more faith that Facebook will start to care when it affects their bottom line. If users start going because they make money selling it. But they sell ads based on users. Users are gone, they don't make money. And once people start realizing that Instagram and Whatsapp are also part of it, they'll leave it-- like they're already starting to with Facebook-- and that one will get their attention for sure. MICHAL LEV-RAM: And it's going to become a bigger and bigger issue because of the regulatory crackdowns. Those are unavoidable. You can change the narrative, but the regulations aren't going away. 

Insights: Facebook’s $5 Billion Settlement Won’t Make It Care More About User Data

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Will it make them care more about user data?

Facebook’s $5 Billion Settlement 

Welcome to Fortune text debate. Will we discuss the issues of the day in two minutes? Today we're talking about Facebook and what it will take to make them take user data seriously. So the FTC recently came to a settlement with Facebook for $5 billion. Sounds like a lot, and it is a lot of money, but for Facebook, it ended up being more of a slap on the wrist. You know, what's it gonna take for them to take this issue seriously? Finally, yeah. They got a $5 billion fine and their stock went up. There was sort of universal dismissal that this is not a real enforcement action. And the, the FTC chief said, You know, we need better rules were just enforcement body. We can't make the rules, so it comes back to We need legislation on regulation that provide specific guidelines for Facebook and other data handlers to know what they're supposed to do. I don't think that's the thing that's missing from Facebook, but anyway, that's that's what you know. I agree with you in a very regulations. Sounds great. You know something that will really hold them accountable. But as we saw in their hearing with Mark Zuckerberg. They really don't know what they're talking about. They just had no concept of not just have Facebook worked with Twitter, just social media and the Internet In general, I don't really have a face that Congress will be able to put laws on. The books that are more than symbolic can actually make a meaningful difference. What symbolic would be a start? But I will say I think they I hope that they've come some distance since the infamous we sell ad senator hearing. But second, there's a lot of bipartisan shared skepticism of Facebook, and I think that Democrats, Republicans for different reasons, they don't trust the company and they think they sort of see the systemic problems. So I have some faith that there could be some healing. Maybe it's what Facebook is. What we need to bridge the partisan divide in this country is our shared skepticism. I have more faith in that Facebook will third to care when it affects their bottom line. If news there start going because that's you know, they make money selling it, but they sell ad based on users. Users are gone, they don't make money, you know. And once people start realizing that Instagram WhatsApp are also part of it, they'll leave it like they're already starting to his Facebook and that wounded get their attention, for sure, and it's going to become a bigger and bigger issue because of the regulatory crackdown. Those are unavoidable. You can change the narrative, but the regulations aren't going away.