Facebook Sets Aside €2.8bn As It Prepares To Be Sued

Vanessa Conneely - 25th April 2019

The social media giant is being investigated for its privacy practices.

Facebook says it has earmarked some of its profits to pay for the potential costs of a legal battle with US authorities over privacy. The social media giant is facing a fine over countless security scandals, which began with Cambridge Analytica in March of last year.

But the bad press doesn’t seem to be affecting the company’s bottom line. Total sales for Facebook for the first three months of this year jumped 26 per cent to €13.5bn, narrowly beating market expectations. The company also claims its monthly users rose 8 per cent, bringing the number to 2.38 billion worldwide.

"We had a good quarter and our business and community continued to grow," founder and chief executive Mark Zuckerberg said.

"We are focused on building out our privacy-focused vision for the future of social networking and working collaboratively to address important issues around the internet."

Facebook, which owns Instagram, last week admitted that millions more Instagram users were affected by a security lapse than it had previously disclosed. It had mistakenly stored the passwords of hundreds of millions of users without encryption.

The company shares are up by nearly 40 per cent in the year to date, far outperforming the broader market, and were up nearly 5 per cent in late trading on Wall Street.

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