The European Union has cautioned Facebook it will be subject to sanctions unless it revises its what the block says are “misleading” consumer terms of service. EU Justice and Consumer Commissioner Vera Jourova on Thursday gave the social media giant until the end of the year to provide more information on how it uses the personal data it gathers from its users.
Ms. Jourova also wants the company to explain how its shares the data with third parties. The commissioner warned the Nasdaq-listed firm that it risks facing penalties if it fails to comply with the block’s new transparency rules, which include telling its 380 million users in the block how it makes money through their data.
Earlier this year, the commissioner asked Facebook and other social media companies to comply with the new regulations that Brussels has created. Jourova says that she has run out of patience with the company, two years after holding discussions with its founder and chief executive officer Mark Zuckerberg.
In a statement released to members of the media, Jourova said, “My patience has reached its limit. While Facebook assured me to finally adapt any remaining misleading terms of services by December, this has been ongoing for too long. It is now time for action and no more promises. If the changes are not fully implemented by the end of the year, I call on consumer authorities to act swiftly and sanction the company.”
Jourova did not spell out the type of sanctions that the social media network is likely to face should it fail to comply as requested. However, it is still possible that the EU could hit the company with a huge fine similar to the $5 billion fine imposed on Google in July.
Facebook shares ended the regular trading session on Thursday with a gain of $2.96, or 1.82% to trade at $166.02. The stock has lost nearly 5% since the beginning of the year.
Facebook Inc Company Profile
Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its products include Facebook Website and mobile application that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers.
It also offers Instagram, a community for sharing visual stories through photos, videos, and direct messages; Messenger, a messaging application to communicate with other people, groups, and businesses across various platforms and devices. In addition, the company provides WhatsApp, a mobile messaging application.
The company also offers Oculus virtual reality technology and content platform, which allows people to enter an immersive and an interactive environment to train, learn, play games, consume content, and connect with others. As of December 31, 2017, it had approximately 1.40 billion daily active users.
Facebook, Inc. competes with Twitter, Inc., Snap Inc, Alphabet Inc., and Amazon, Inc. The company was founded in 2004 and is headquartered in Menlo Park, California. – Yahoo Finance