Facebook on Wednesday reported quarterly profit sank 51 percent from a year earlier due to setting aside of $3 billion for an anticipated fine from US regulators.
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Facebook estimated that it will be hit with a fine of between $3 billion to $5 billion by the US Federal Trade Commission for “user data practices” and factored that into its earnings report.
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She advised advertisers to view the FTC fine revelation as a significant development that could bring about changes effecting the way they can use the social network for marketing.
Facebook shares rallied nearly six percent in after-hours trade following the results.
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