The Federal Trade Commission has voted to approve an approximately US$5 billion ($7.4b) settlement with Facebook over privacy violations, in a record deal that will also overhaul how the social media giant handles user data.

In a decision split down party lines, the three Republican commissioners voted in favour of the settlement, with two Democrats coming out against it, according to a person familiar with the deal.

The fine and the changes to Facebook's business practices must now be reviewed by the US Department of Justice before they are formally announced. It is unclear how long this will take, though