Facebook Inc’s share price drops on reports it is being investigated over Cambridge Analytica breach
Facebook’s share price is falling again today, after reports it is being investigated by the US Federal Trade Commission after Cambridge Analytica’s alleged “harvesting” of the data belonging to 50 million people.
The US privacy watchdog is assessing whether Facebook violated terms of a 2011 consent agreement over how it would handle and notify users to changes to its user data policy, Bloomberg reports. If the FTC finds that Facebook did break this agreement, it could fine the platform thousands of dollars a day per violation.
Neither the FTC nor Facebook has commented on the reports, but it was enough to pummel Facebook Inc’s share price for a second day in a row. The Nasdaq-listed stock was down more than 5.6 per cent this afternoon.
That follows a 6.8 per cent drop yesterday, with the share price falling more than seven per cent at points on the first day of trading since the allegations first surfaced.
Earlier today MPs wrote to Facebook boss Mark Zuckerberg to demand he appear before them as part of an ongoing enquiry into fake news.
This morning, the UK’s Information Commissioner said it was seeking a warrant for Cambridge Analytica’s London headquarters, after the consultancy had missed a deadline to hand over certain information.