Zoom settles SEC privacy probe for $18 million from 2020

Zoom Communications Inc. has put forward an $18 million settlement offer to resolve a long-running investigation by the US Securities and Exchange Commission into its privacy practices and communications. This development came to light when Zoom revealed in a recent filing that it set aside $18 million in the last quarter for a possible agreement with the financial regulator. Although the proposal is still pending SEC approval, it marks a significant step toward putting this issue to rest.

The SEC initially launched its probe into Zoom’s privacy policies, encryption standards, and how it calculated usage metrics back in 2020. This scrutiny coincided with the rapid rise in Zoom’s popularity as a crucial communication tool for remote workers during the pandemic. As the user base expanded, so did the attention from government bodies. In addition to the SEC investigation, Zoom also faced subpoenas from two US attorneys regarding its interactions with foreign governments. These investigations are ongoing, according to Zoom’s filing. Moreover, in an effort to address concerns raised by the Federal Trade Commission in November 2020, Zoom committed to enhancing its security measures to settle disputes related to user access to meetings and privacy settings.

In a separate move, Zoom recently rebranded itself to reflect its broader range of business-oriented services beyond videoconferencing. By diversifying its offerings, Zoom aims to cater to a wider spectrum of communication needs in today’s dynamic environment.

This marks a pivotal chapter for Zoom as it navigates through legal challenges and adapts to evolving market demands. Stay tuned for further updates on this story as it develops.