* Facebook, which is inching closer to an IPO, reached a settlement with the FTC after the federal government accused the social networking champ of engaging in “unfair and deceptive” practices regarding privacy, including the act of making user information public without warning or consent. Facebook will now submit to privacy audits every two years and has also split the role of Chief Privacy Officer into two positions. In a lengthy blog post, Zuckerberg admitted the company has “made a bunch of mistakes” and pledged to make it “the leader in transparency and control.” (FTC, Facebook, and TechCrunch)

* Path, the private social networking app that emphasizes sharing with close friends and family, released a version 2.0 software update that changes things up for the better. “Our mission with Path was to create something you felt you could put your whole life into,” Dave Morin, Path CEO and former Facebook employee, told Fortune last week. To that end, the redesigned Path now presents a more holistic approach with a smooth, streamlined interface, allowing its 1 million-plus users to listen to music others are listening to within the app thanks to iTunes integration and chronicle when users are sleeping and waking up.

* Bids for Yahoo (YHOO) are coming in, with at least two reportedly coming from private equity firms, valuing the Internet company at more than $20 billion. If true, both bids would be on the lower end of what media had been speculating during recent months. (All Things D and Business Insider)

* Spotify will reportedly start offering Facebook-like apps that will tack on more features to the growing music streaming service. An “app finder” could allow users to read reviews as they listen to corresponding music, while one app may display lyrics as a song plays. (The Wall Street Journal)

* Highlights from the FCC’s 109-page report “slamming” AT&T’s proposal to buy T-Mobile. “Staff thus finds … that the proposed transaction would likely lead to a substantial lessening of competition in violation of the Clayton Act,” one part reads. (The Verge)

* Business Insider’s Matt Rosoff explains why Google (GOOG) is turning into Microsoft (MSFT), pointing to examples from within the company’s huge product portfolio. (Business Insider)

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