Facebook's earnings hit by $3 billion legal expense related to FTC investigation

The social network said Wednesday in its first-quarter earnings report that it incurred $3 billion in expenses related to an ongoing investigation by the US Federal Trade Commission.

The investigation is about Facebook's privacy practices and whether the company violated a legal agreement it had with the US government to keep user data private.

The FTC started investigating Facebook after revelations surfaced that UK consultancy Cambridge Analytica harvested the data of up to 87 million users without their permission.

"We had a good quarter and our business and community continue to grow," said Facebook CEO and co-founder Mark Zuckerberg.

"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."

"Advertisers continue to be stuck on Facebook, despite its many challenges," eMarketer analyst Debra Aho Williamson said in a statement.

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