As of late Monday, the British privacy regulators are seeking to look through the political consultancy Cambridge Analytics. The proposed action comes as a response some reports that claimed that Facebook might have improperly gained access to data on 50 million Facebook users (Channel 4 report).
The US and European lawmakers demanded a reasonable expiation of the consulting firm, which was working on Donald Trump’s campaign came into hands with all the data that they used to their advantage. In the United States, however, the Congress demanded Facebook’s CEO testify about its actions.
Facebook said in a statement on Monday that the company has hired forensic auditors from the firm Stroz Friedberg to; look into the issue and see if Cambridge Analytica still has the data. Facebook also closed with shares down by 7.0 percent on Monday taking away $40 billion off its market value, leaving the investors worried about the new legislation and how it could damage Facebook’s advertising business.
According to a Reuters report, Facebook head of Security, Alex Stamos plans to leave the company over disagreements about over Facebook's policies and misinformation. Although late Monday, Alex Stamos tweeted on his account that, “Despite the rumors, I’m still fully engaged with my work at Facebook. It’s true that my role did change.”
The massive criticism faced by Cambridge Analytica remains to be bad news for Facebook’s reputation, the company has been under attack over Russia’s apparent use of Facebook's told to convince the US voters with false news posts. However, Cambridge Analytica denied all the media claims and that Facebook deleted all the information that did not meet the data protection rules.
Facebook shares fell 6.8 percent to $172.56, pulling down the U.S S&P 500 tech sector down by 2.1 percent. The threat had also had its impact on the shares of Twitter, Google and Snap Inc.