Facebook is under federal investigation
Illustration: Rebecca Zisser/Axios
The Federal Trade Commission on Monday morning confirmed that it has opened a non-public investigation into Facebook for its user privacy practices.
Market impact: Facebook shares are down 2% as of 12:30pm.
Here is the FTC's statement:
“The FTC is firmly and fully committed to using all of its tools to protect the privacy of consumers. Foremost among these tools is enforcement action against companies that fail to honor their privacy promises, including to comply with Privacy Shield, or that engage in unfair acts that cause substantial injury to consumers in violation of the FTC Act. Companies who have settled previous FTC actions must also comply with FTC order provisions imposing privacy and data security requirements. Accordingly, the FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices.”