Facebook-Cambridge Analytica controversy: Zuckerberg loses $6 billion in 1 day
Amid growing controversy over data security and privacy, Facebook's shares fell by 6.7% as they ended trading at $172.56, wiping almost $37 billion off the social network's market value. Notably, Facebook CEO Mark Zuckerberg's net worth dropped by around $6 billion in just one day. This comes after reports surfaced that Cambridge Analytica obtained user data of 50 million people from Facebook before the presidential elections in 2015.
Facebook failed to inform users of the data breach
Cambridge Analytica allegedly used personal data to manipulate US voters, and Facebook is being accused of failing to inform its users of the breach. Users should have known that their profile information may have been kept by the data analytics firm. "The lid is being opened on the black box of Facebook's data practices, and the picture is not pretty," said a law professor.
Cambridge Analytica violated our terms of service: Facebook
In defense, Facebook, that has since suspended Cambridge Analytica's account from the social network, said its platform wasn't breached, but that its terms of service were violated. However, Facebook has now changed its terms to limit the user information third parties can collect.
Facebook faces questions from US and UK politicians
The social media platform is also facing questions from US and UK politicians about its privacy rules. The UK data protection body is seeking a warrant to search Facebook's offices to look at the databases and servers used by Cambridge Analytica, Information Commissioner Elizabeth Denham said. US Senators Amy Klobuchar and John Kennedy also want to question CEO Mark Zuckerburg over the issue.
Should government step in to formulate Facebook's privacy rules?
"While Facebook has pledged to enforce its policies to protect people's information, questions remain as to whether those policies are sufficient and whether Congress should take action to protect people's private information," US senators Amy Klobuchar and John Kennedy said.
