*WASHINGTON: Facebook shares plunged Monday following revelations that afirm working for Donald Trump’s presidential campaign harvested data on 50million users, as analysts warned the social media giant’s business modelcould be at risk.*
Calls for investigations came on both sides of the Atlantic after Facebookresponded to the explosive reports of misuse of its data by suspending theaccount of Cambridge Analytica, a British communications firm hired byTrump’s 2016 campaign.
“This is a major breach that must be investigated. It’s clear theseplatforms can’t police themselves,” Democratic Senator Amy Klobuchar saidon Twitter.
Expressing “serious concern regarding recent reports that data frommillions of Americans was misused in order to influence voters,” Klobucharand Republican Senator John Kennedy called for Facebook chief MarkZuckerberg and other top executives to appear before Congress, along withthe CEOs of Google and Twitter.
In Europe, officials voiced similar outrage.
Vera Jourova, European Commissioner for Justice, Consumers and GenderEquality, called the revelations “horrifying, if confirmed,” and vowed toaddress her concerns while travelling to the United States this week.
In Britain, parliamentary committee chair Damian Collins said bothCambridge Analytica and Facebook had questions to answer following whatappears to be a giant data breach, carried out in an attempt to influencevoters’ choices at the ballot box.
“We have repeatedly asked Facebook about how companies acquire and hold onto user data from their site, and in particular whether data had been takenfrom people without their consent,” Collins said in a statement.
“Their answers have consistently understated this risk, and have also beenmisleading to the committee.”
* ‘Systemic problems’*
On Wall Street, Facebook shares skidded 7.7 percent in midday trade amidconcerns about pressure for new regulations that could hurt its businessmodel.
Brian Wieser at Pivotal Research said the revelations highlight “systemicproblems at Facebook,” but that they won’t immediately impact Facebookrevenues.
Still he said “risks are now enhanced” because of the potential forregulations on how Facebook uses data for advertising and monitoring users.
According to a joint investigation by The New York Times and Britain’sObserver, Cambridge Analytica was able to create psychological profiles on50 million Facebook users through the use of a personality prediction appthat was downloaded by 270,000 people, but also scooped up data fromfriends.
Cambridge Analytica said it was in touch with Facebook while denying anymisuse of data.
Facebook on Friday suspended the firm, but pushed back against the claim ofa major breach, suggesting misused data was limited to a far smaller groupof users.
*‘Huge impact’*
Jennifer Grygiel, a Syracuse University professor who studies social media,said the disclosures will increase pressure to regulate Facebook and othersocial media firms.
“Self-regulation is not working,” Grygiel said.
“I’m wondering how bad this needs to get before our regulators step in andhold these companies accountable.”
Grygiel said the breach stems from “thin” regulations that allowed Facebookand its partners to exploit data without oversight.
“They grew because of this,” she said. “This was not a mistake.”
Daniel Kreiss, a professor of media and communications at the University ofNorth Carolina, said Facebook failed to live up to its responsibilities inhandling targeted political ads as it expanded.
“The fact that Facebook seems to make no distinction between sellingsneakers and selling a presidential platform is a deep problem,” Kreisssaid.
Some analysts suggested the breach posed an existential crisis for Facebookbecause of how it gathers and uses data on its two billion members.
David Carroll, a media professor at the New School’s Parsons School ofDesign, said Facebook and others will soon be forced to live with newprivacy rules such as those set to take effect in the European Union.
“Facebook and Google will have to ask users a lot more permission to trackthem,” Carroll said. “Most people are going to say no, so I think it’sgoing to have a huge impact on these companies.”
Carroll has filed a legal action in Britain calling on Cambridge Analyticato disclose what data was gathered and used on him.
“If I can get them to disclose my data or my personality score, itindicates every other American has the right to the same thing,” he said. -APP /AFP