Facebook says it faces ‘government investigations’ related to whistleblower documents

“As of September 2021, we are subject to government investigations and requests related to allegations by a former employee and the release of internal company documents relating to, among other things, algorithms, advertising and user metrics and content enforcement practices, as well as disinformation and other undesirable activity on our platform and the well-being of our platform. the user ” Recording quarterly earnings With the Securities and Exchange Commission (SEC).

The filing did not specify whether the government’s “inquiries and requests” refer to known inquiries by the US Senate and British Parliament, or to previously unconfirmed investigations from federal agencies in the United States and from governments abroad.

Facebook declined to provide details about the disclosure. “We are always available to answer regulators’ questions and will continue to cooperate with government inquiries,” company spokesman Andy Stone said in a statement to CNN Business.

FTC is said to have begun ‘looking into’ whistleblower disclosures, WSJ mentioned Wednesday, citing unnamed sources familiar with the matter. In particular, the agency is said to be looking into whether Facebook has infringed on it $5 billion settlement with the agency in 2019 regarding the company’s data privacy practices.

Juliana Greenwald of the Federal Trade Commission’s Office of Public Affairs declined to comment, adding that “the FTC’s investigations are not public, so we generally don’t comment on whether we’re investigating a particular matter.”

Haugen, A Former Facebook Product Manager Who left the company in May, submitted documents as evidence to support at least eight Complaints to the Securities and Exchange Commission allege who – which Facebook social networking site (FB)Misled investors and the public about issues that came up internally. It also submitted revised versions of the documents to Congress. The leaked documents also formed the basis of the Wall Street Journal’s “Facebook Files” series, and, more recently, a set of reports by a group of news organizations, collectively referred to as “Facebook Sheets. CNN is a member of the consortium.
The SEC did not immediately respond to a request for comment on whether it had launched an investigation based on Haugen’s complaint and disclosures from Another, anonymous former Facebook employee turned whistleblower that appeared on Friday.
The documents provide the deepest insight to date Many of Facebook’s biggest problems And how it’s discussed internally – an unprecedented insight into the nearly $890 billion company, whose apps are now used by more than 3.6 billion people worldwide.

Facebook has vigorously retracted many of Haugen’s allegations and many reports about the documents, which the company says mischaracterized its research and efforts. “Yes, we are a company and we make money, but the idea that we’re doing this at the expense of people’s safety or well-being misunderstands where our business interests lie,” a company spokesperson previously said in a statement.

Despite the disclosure — and the flurry of critical news coverage for the company — it’s not clear Facebook shareholders are worried. after, after Facebook mentioned On Monday, after its quarterly profit grew to more than $9 billion, the company’s stock rose 3% in after-hours trading.
Facebook shares are currently down about 11% since last month, but that may reflect investors’ concern about the impact Apple privacy changes On the advertising business of the social media giant.

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