The Securities and Exchange Commission is expected to announce Wednesday it has reached a settlement with Facebook (FB) - Get Report over claims it failed to adequately disclose risks related to its privacy practices, and that the agreement will include a fine of more than $100 million, according to a published report.
A story in the Wall Street Journal late Wednesday citing a person familiar with the matter reported the SEC settlement centered on allegations Facebook did not sufficiently warn investors that developers and others may have users' data without their permission. The SEC began investigating Facebook after it emerged that analytics firm Cambridge Analytica had harvested data on millions of users of the social media platform without consent.
Representatives for Facebook and the SEC could not be reached late Tuesday for comment on the report.
News of the SEC deal comes amid reports that Facebook and the Federal Trade Commission have reached a settlement over the company's privacy violations, and the terms are more than just monetary. The social media firm will pay a penalty of $5 billion, at the high end of the $3 billion to $5 billion range that was under negotiation, Reuters reported on Tuesday. The settlement also mandates that Facebook establish a board committee to oversee privacy issues at the company, which includes "executive certifications" of proper oversight.
Also on Tuesday, Shares of Alphabet (GOOGL) - Get Report , Amazon (AMZN) - Get Report , Facebook and Apple (AAPL) - Get Report all slid in after-hours trading following news the Department of Justice has launched a new probe of the online industry giants. The investigation will look at whether the big tech firms are stifling competition, according to a statement.
DOJ antitrust regulators are "reviewing whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers."