USA launches investigation against Facebook in data scandal
The data scandal could cost Facebook dearly. The US consumer protection agency FTC on Monday increased the pressure on the Internet company because of the allegedly too lax handling of personal information of the more than two billion users worldwide.
For example, FTC Acting Director Tom Pahl announced a review of Facebook's privacy rules. In the worst case, the company could face a billion-dollar fine.
Share under pressure
The FTC's announcement in particular caused a veritable sell-off of Facebook shares on the stock market: at times, they plummeted by 5.9 percent to 150 dollars, the lowest level since the beginning of July 2017. Last week, the U.S. company had already lost around 75 billion dollars in stock market value - now it has peaked at more than 100 billion. Advertising customers are massively unsettled.
Just over a week ago, it became known that the British analytics firm Cambridge Analytica allegedly used the personal data of 50 million Facebook members in an improper manner to support US President Donald Trump in the election campaign. If the FTC finds Facebook guilty of negligence in this regard, it can issue hefty fines that could amount to thousands of dollars per day. Facebook members and politicians around the world are already calling for consequences - such as stronger regulation of the Internet giants. Apple and IBM, two of the world's largest tech companies, have now sided with the critics. The CEOs of both companies spoke out in favor of stricter regulations for handling personal data.
The company is also being heckled in Germany: Following a meeting with Facebook representatives in Berlin, German Justice Minister Katarina Barley said the company would inform those users whose data had been misused.
Apology from Facebook
Facebook's vice president for Europe, Richard Allan, who was appointed to the report, did not want to comment publicly after the conversation with Barley, but stated in writing: "We are taking the necessary steps to ensure that something like this cannot happen again." In Europe, he said, only very few users were affected by the alleged data misuse. At the same time, Allan apologized, as did the entire Facebook board around company CEO Mark Zuckerberg. (SDA)
