The dispute was tied to an FTC inquiry into the improper handling of the personal data of millions of Facebook users by Cambridge Analytica, a data firm that worked on President Donald Trump's 2016 campaign.
The Journal reported that the inquiry focused on whether the matter violated a 2012 consent decree in which Facebook agreed to better protect its users' privacy.
The FTC's three Republican commissioners voted for the settlement, while the two Democrats on the panel objected, the person familiar with the matter told the paper.
The decision now goes to the Justice Department's civil division for review, the paper reported. Such reviews are routine and don't usually change the outcomes, the paper said.
The Menlo Park, Calif., social-media giant in April said in its first-quarter earnings report that it had set aside $5 billion to pay an expected fine.
Facebook shares rose 1.8% to $204.87 in the regular session Friday. They were little changed after hours. The shares are up almost 57% year to date.
U.S. Senator and presidential candidate Elizabeth Warren tweeted late Friday that the settlement is a victory for Facebook, pointing out that the fine amounts to only a portion of the company's profits in a single year.
Others saw the settlement as a sign of things to come for big tech companies facing more scrutiny from governments in the U.S. and abroad.
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