Facebook is looking to help Amazon save its online retail business by paying $250,000 to a San Francisco law firm that helped it get the go-ahead to use a special technology called “Skyhook” to allow shoppers to buy online from Amazon, a source with knowledge of the deal told TechCrunch.
The deal, which was first reported by The Verge, will be the largest such settlement Facebook has ever reached.
“We have to keep in mind that Amazon is a very large company with millions of customers,” said the source, who spoke on condition of anonymity because he was not authorized to discuss the settlement publicly.
“They have an enormous business to do with selling their product online.
They have to take a risk.”
The deal will help Facebook build out a partnership with Amazon that will allow it to make more money off of the online retailer.
While the two companies have been rivals for years, this is the first time Facebook has reached out directly to Amazon in this way.
The source said the settlement, which is being paid out to a partner, was finalized by an Amazon lawyer who said the tech giant would “continue to operate as usual” with the same Amazon payment terms and conditions.
In addition to helping Facebook, the new agreement with Amazon will also help other tech companies that sell online products through the company’s platform.
The technology allows sellers to make money off their products through advertising.
In fact, one of the main ways to make the money Facebook makes from ads is by selling ads on the company website.
The company has also been working to get a number of other tech firms to use Skyhook as well.
The tech giant paid $10 million to a group of startups to help them develop a similar solution, and Facebook has also purchased advertising technology from advertising giant Acxiom, the source said.
Facebook is still figuring out what its business model will be after this new deal.
The $250 million payment is part of a $400 million settlement the company reached with the U.S. Department of Justice in 2015, in which it agreed to pay a fine of $1 billion.
Facebook has been under pressure from lawmakers and antitrust regulators in recent years over how it handles payments to online vendors.
Earlier this month, the company agreed to a $7.2 billion settlement with the Federal Trade Commission (FTC) to settle charges that it failed to prevent Comcast from illegally bundling broadband customers with cable and satellite television services.
Facebook also agreed to an $85 million fine for the same issue, which led to a new investigation into the company.
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