Google to Settle FTC’s YouTube Investigation for Up to $200 Million: Report
Alphabet (GOOGL) , the parent company of Google, has agreed to settle the Federal Trade Commission’s YouTube investigation by paying an amount from between $150 million to $200 million, according to a report from Politico on Friday.
Shares of Alphabet did not see a major move, trading down 0.31% to $1,190.53 at the close on Friday.
While the settlement figure is hardly a drop in the bucket, mega-cap tech companies have seen fines much larger than this in the past. In some cases, the fines have reached into the billions of dollars.
The issue with the FTC stemmed from concerns over possible violations of children’s data privacy laws on YouTube. The company has also been exploring ways to protect its younger users, including by creating the YouTube Kids platform. The largest previous fine from the FTC related to violating the Children’s Online Privacy Protection Rule (COPPA) was $5.7 million, which came in February to Music.ly.
According to Politico, the FTC voted 3-2 along party lines on the settlement. It will now be sent over to the Justice Department for part of its review process. Even if this investigation is settled, Alphabet has other investigations looming as well, most notably an antitrust probe from the Department of Justice.