Facebook set to pay $5bn in privacy settlement

The Federal Trade Commission will reportedly announce on Wednesday that Facebook has agreed to a $5bn settlement over allegations it mishandled user privacy.

The settlement also includes a commitment from Facebook to create a board committee on privacy and agreeing to new executive certifications on user privacy that will come directly certified from chief executive Mark Zuckerberg, the Washington Post reported on Tuesday, without citing sources.

It added the FTC would allege Facebook misled users about its handling of their phone numbers and its use of two-factor authentication.

In March, the FTC opened an investigation into allegations Facebook inappropriately shared information belonging to 87m users with the now-defunct British political consulting firm Cambridge Analytica. The settlement was approved by the FTC’s five-member board by a 3-2 vote.

Facebook has faced trouble regarding the privacy and treatment of user data but the company's core business has proven resilient, as it easily beat past earnings estimates in the past two quarters. The company is set to report earnings on Wednesday.

(Editing by Frank Prenesti)