Facebook will pay an unprecedented $5 billion penalty over privacy breaches

Washington (CNN Business)The Federal Trade Commission announced a $5 billion settlement with Facebook (FB) on Wednesday, resolving a sweeping investigation by regulators into how the company lost control over massive troves of personal data and mishandled its communications with users. It is the largest fine in FTC history and yet still only about a month’s worth of revenue for Facebook. “The magnitude of the $5 billion penalty and sweeping conduct relief are unprecedented in the history of the FTC,” said Chairman Joseph Simons in a statement. “The relief is designed not only to punish future violations but, more importantly, to change Facebook’s entire privacy culture to decrease the likelihood of continued violations.” In a Facebook post published shortly after the …