Facebook Facing More Probes
CBJ — The world’s largest social media network is still being grilled by the U.S. government, and it’s beginning to impact on the bank balance.
Facebook says that new rules and product changes aimed at protecting users’ privacy will negatively impact its revenue growth into next year and significantly raise expenses, taking the shine off quarterly revenue results that beat expectations.
The outlook was the latest twist in a day of contrasting news for the world’s largest social media company. Facebook earlier agreed to pay $5 billion to settle a U.S. Federal Trade Commission data privacy probe but then disclosed that the regulator was now investigating it for anti-competitive behavior.
Facebook’s chief financial officer, Dave Wehner, warned that operational changes required by the settlement would be costly. In addition, he said, revenue will be hurt by new limits on usage of consumer data being set by governments around the world and by tech companies on whose systems Facebook relies.
Second-quarter revenue rose to $16.9 billion from $13.2 billion a year ago.