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5 - Fundamental Corporate Responsibility

Published online by Cambridge University Press:  22 April 2022

Haochen Sun
Affiliation:
University of Hong Kong Faculty of Law
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Summary

In the wake of the Cambridge Analytica data scandal discussed in Chapter 4, Facebook and other major technology companies were accused of being even more irresponsible than the financial institutions that caused the 2008 financial crisis.1 The Federal Trade Commission (FTC) responded to the scandal by imposing a fine of roughly $5 billion on Facebook in July 2019 for mishandling private data, the largest fine ever issued by the FTC.2 However, the FTC’s response triggered heated debate over whether a fine was an effective deterrent. Facebook’s stock price actually surged following the FTC’s decision, which led to claims that the decision had served to increase Mark Zuckerberg’s net worth.3 Legislators proclaimed that the FTC had “failed miserably” with this “inadequate” and “historically hollow” decision.

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Publisher: Cambridge University Press
Print publication year: 2022

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