The US Federal Trade Commission is investigating Facebook against accusations of abusive personal information of five million users. In the meantime, Alexander Nix, the head of Cambridge Analytica has been removed from the company board. [Source: BBC News]
The complaint against Facebook is, Facebook has given permission to Cambridge Analytica to access users information via an app of Cambridge Analytica. Cambridge Analytica is a British data mining firm which analysis data with strategic communication for the election process.
The app collected about five million users data which are used in favor of Donald Trump in the US presidential election in 2016. A professor associated with this work recently leaked this info in front of press. Now the politicians of United States, the UK and various countries of European Union (EU) have questioned the whole issue.
Complaint has been alleged that by using these information in secret the organization has violated the US election policy. But, Cambridge Analytica denied these allegations.
British and European parliament asked Facebook CEO Mark Zuckerberg for an explanation about these allegations. Hearing all off this but Mr. Zuckerberg was silent. He was criticized from all sides. Finally, he broke silence. He apologizes for Facebook’s data privacy scandal in full-page newspaper ads in seven British newspapers and three American ones and admitted that millions of Facebook user data has gone to an organization of political consultants. He apologized for everything.
Mr. Zuckerberg told that, “This was a breach of trust, and I am sorry we did not do more at the time. We are now taking steps to make sure this doesnt happen again. We have already stopped apps like this from getting so much information. Now we are limiting the data apps get when you sign in using Facebook. We are also investigating every single app that had access to large amounts of data before we fixed this. We expect there are others. And when we find them, we will ban them and tell everyone affected. Finally, we will remind you which apps you have given access to your information- so you can shut off the ones you dont want anymore.”
Zuckerberg will have to go to the Congress hearing for recent Facebook data scandal.
In the matter of congressional hearing, Zuckerberg said that if he does something right, he will be able to prove him in front of Congress.
Since the accusation of data misuse rise, Facebook share market have collapsed. When the news of the leaking of Facebook users data, the share price fell 6.77 percent. Because of this collapse, Facebook has fallen from 500 list of top five companies of stock market of US index Standard & Poor’s.
Facebooks 14-year journey, which is one of the most shocking share collapsed. Investors are worried because the company loss $ 3,6 billion US dollars. Zuckerberg shares 16 percent on Facebook. Personally, he has loss $ 550 million US dollars. For this reason, his total amount of wealth dropped by $ 6900 million US dollars. He also lost the place of top five richest mans list. On Saturday, a number of media reports said that Cambridge Analytica misused more than five billion users data. Since then, Facebook shares have started to collapse.