Published: Mon, March 19, 2018
Worldwide | By Gretchen Simon

Facebook shares slide amid questions over Cambridge Analytica

Facebook shares slide amid questions over Cambridge Analytica

The New York Times, however, reported that Kogan provided that data - which included information from over 50 million profiles - to Cambridge Analytica, breaching Facebook's rules.

Facebook's share price has dropped more than five per cent at the USA market open following allegations that data firm Cambridge Analytica mined Facebook users' data without their permission, helping Donald Trump win the United States presidential election.

Tech shares were the worst-performing of the major sectors, but the broader market also has been pressured over the last couple of weeks by worries over a potential trade war and the prospect of more aggressive Fed rate hikes due to faster growth and inflation.

Conservative MP Damian Collins - chair of the Commons digital, culture, media and sport select committee - said he would call the bosses of both companies, Alexander Nix and Mark Zuckerberg, to provide further testimony.

Facebook on Friday said that a professor used Facebook's log-in tools to get people to sign up for what he claimed was a personality-analysis app he had designed for academic purposes.

European Union lawmakers will also investigate whether the data of more than 50 million Facebook users has been misused and whether the massive trawling of data included EU citizens, said Antonio Tajani, president of the European Parliament.

EMarketer estimates the combined USA digital ad market share of Facebook and Google will fall for the first time this year to 56.8% from 58.5% in 2017.

Micro Focus shares slump on revenue warning as chief executive quits
Micro Focus completed its USD8.80 billion reverse takeover of Hewlett Packard Enterprise Co's software arm in September 2017. He has stepped down immediately, with chief operating officer Stephen Murdoch promoted to take his position.

Adam Schiff, the top Democrat on the House intelligence committee, urged for an investigation of Cambridge Analytica and said Facebook must explain why it would provide private user information to a company with links to Russian Federation.

Facebook shares tumbled 5.0 percent in early trading Monday following reports of a large data breach as U.S. stocks fell ahead of a Federal Reserve policy decision later this week. It was the biggest intraday drop since January 12.

A researcher who worked with the professor on the app is now currently an employee at Facebook, which is reviewing whether he knew about the data leak. Damian Collins, a British lawmaker, said Sunday that Zuckerberg or another senior executive should appear in front of his committee because previous witnesses have avoided hard questions, creating "a false reassurance that Facebook's stated policies are always robust and effectively policed".

It has sought to crack down on fake news, undermine the business model used by trolls and make political advertising more transparent.

Facebook alleges that users' data was taken from its site using an unapproved method.

Rep. Adam Schiff, D-Calif., ranking member of the House Permanent Select Committee on Intelligence, said in a statement that Facebook "must explain the long delay" and "how they will ensure the protection of users from malicious access to their personal information". Social media companies (and nearly every for-profit internet company) earn a major share of their revenues by selling the data to third parties.

The European Commission has told firms such as Google and Facebook to remove "terrorist content" an hour after it is first notified, or face legislation forcing them to do so. "Communications technologies have become an essential part of our daily lives, but if we are unable to have control of our data, these technologies control us".

Like this: