Fines have little impact

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Typically, fines need to be high enough to change the behavior of a company. According to Buzz Feed News, $3 billion is too low to change the behavior of Facebook.

Questions:

  1. During the first three months of 2019 after the $3 billion fine, how much did the revenues of the company grow?
  2. How much did Facebook think the expenses could go as high as?
  3. After announcing the anticipated settlement, by how much did Facebook’s market capitalization climb in just over an hour of after-hours trading?
  4. What are the fines for and which regulatory body is imposing them?

Source:

Kantrowitz, A. and R. Mac. (2019). Facebook Set Aside $3 Billion For A Penalty. Then It Grew By $40 Billion. Buzz Feed News, April 24 (Retrievable online at
https://www.buzzfeednews.com/article/alexkantrowitz/facebook-3-billion-ftc-fine-little-impact )