Mark Zuckerberg to Testify before US Congress – Facebook Stock Has Plunged 7% (UPD)

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Inc. is under firestorm after the bombshell report that data analysis firm Cambridge Analytica that helped Donald Trump win the presidency had used information from millions of users without their permission.

Keep on reading Nexter.org to know more.

Updated (04:00 am EST Mar. 28):

  • According to CNN, Mark Zuckerberg is to take a trip to Washington to testify about privacy issues before Congress;
  • The meeting will take place in a next few weeks, so Inc. has a bit of time to plan Mark’s speech;
  • is sure that Zuckerberg’s testimony will put pressure on Google and Twitter CEOs – they will have to do the same;
  • Senate Judiciary Chairman Chuck Grassley invited all three CEOs to meet him at the beginning of April;
  • Mark Zuckerberg refused to go on the trip to UK and sent two spokesmen.

Market value drops 

  • loses its market value after the biggest company’s scandal in four years.
  • In the first days, the company lost nearly $37 billion of the value that it about 7%.
  • $49.4 billion has been wiped off ’s market value in the first week after the report was published.
  • Yesterday, March 27 shares fell almost 7% after the reports that CEO Mark Zuckerberg agreed to testify before Congress about the company’s data scandal.
  • Since the scandalous report was published, ’s stock has plunged 18%, wiping out nearly $80 billion from the social networking giant’s market value in the process.

facebook-value-photo

Source: markets.businessinsider

Updated (01:00 pm EST Mar. 26):

  • The Federal Trade Commission publicly confirmed that it was investigating ’s privacy practices as a result of the Cambridge Analytica scandal.
  • The FTC previously looked into ’s privacy practices several years ago and found them wanting.
  • In 2011, had an agreement with the FTC that regulated how it treated its users’ privacy.

Updated (06:00 am EST Mar. 26):

  • remains under firestorm after four lawsuits hit the company in one week.
  • A user, Lauren Price of Maryland, filed a suit in San Jose on Tuesday on behalf of up to 50 million people whose data was used by Cambridge Analytica.
  • Individual shareholders in , Fan Yuan and Robert Casey, each filed their own class action lawsuit against the company, CEO Mark Zuckerberg, and CFO David Wehner.
  • Also, the fourth lawsuit is filed in San Jose by attorney Jeremiah Hallisey, on behalf of the company’s shareholders against Zuckerberg, COO Sheryl Sandberg, and board members.
  • At the same time, CEO Mark Zuckerberg took out full-page ads in several British and American newspapers Sunday to apologize for a “breach of trust” in the Cambridge Analytica scandal.

facebook-apology-note-photo

Updated (10:00 am EST Mar. 25):

  • users who downloaded their data archive noticed that the social network had been keeping records of his phone calls and texts from Android devices.
  • Several users wrote about their discovery on their Twitter pages.

  • It turned out that ’s Android apps keep logs showing the names of the people you called and texted, how long the conversation lasted, and the other party’s phone number.

  • In response, says that it’s an opt-in feature on Messenger for Android, as well as the low-data Lite — and that it’s about making the social network better.

facebook-photo

READ: How To Delete Or Deactivate Your Facebook Account In 2 Easy Steps

Updated (4:00 am EST Mar. 23):

  • Mark Zuckerberg,  founder and CEO, is called to testify about how the company handles privacy and data;
  • Committees in both the House and Senate warn Zuckerberg to come voluntarily for sessions of testimony;
  • There is a probability, Zuckerberg will be sent subpoenas to come and testify about mentioned issues;
  • Mark Zuckerberg has recently broken the silence but hasn’t given any answers that would explain the further company actions;
  • Committees members have made it clear:

“We’ve made it clear we want him to come,” stated A. Klobuchar, the Judiciary Committee. “We would like to see a number of the CEOs come from different companies to discuss these privacy issues. And Grassley seems open to it.”

Stay with Nexter.org to know all the details about the scandal.

What is Cambridge Analytica?

Cambridge Analytica is a privately held company that combines data mining and data analysis with strategic communication for the electoral process. In other words, it was working to develop techniques that could be used to influence voters.

Cambridge Analytica specializes in what’s called “psychographic” profiling, meaning they use data collected online to create personality profiles for voters. They then take that information and target individuals with specifically tailored content.

Earlier this firm was connected to the Trump presidency campaign and the Brexit Leave campaign in the UK.

cambridge-analytica-photo

Source: Bryan Bedder/Getty Images

Tricky app

confirmed that it gave permission to University of Cambridge psychology professor Aleksandr Kogan to harvest information from users who downloaded his app — “thisisyourdigitallife” that offered personality test.

But the app also collected data on location, friends and content users who downloaded the app had “liked.”

Moreover, that was allowed by ’s rules at the time.

said it asked Cambridge Analytica to delete the data in 2015.

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Scandalous report

knew ahead about the upcoming New York Times and The Guardian’s Observer report and wrote in the company’s blog that it learned several days ago that Cambridge Analytica hadn’t deleted the user data, and that it needed to suspend the firm.

Cambridge Analytica said that the data set revealed by The New York Times was not used “as part of the services it provided to the Donald Trump 2016 presidential campaign.”

The New York Times, however, reported that Kogan provided that data — which included information from over 50 million profiles — to Cambridge Analytica, breaching ’s rules.

The reports in The Times and other media were based in part on interviews with former Cambridge Analytica contractor and self-styled whistle-blower Christopher Wylie who worked with a Cambridge University academic to obtain the data.

“We exploited to harvest millions of people’s profiles. And built models to exploit what we knew about them and target their inner demons. That was the basis the entire company was built on,” he told to Observer.

Cambridge-Analytica-photo

Source: The Guardian

The end of era?

The social media company’s market valuation fell by roughly $40 billion on Monday.

The company’s stock price was down 6.8 percent by the end of the day, marking the worst day the stock has had since March 2014.

Lawmakers have called on Zuckerberg to explain his company’s actions as the investigation continues.

But it unlikely Zuckerberg to leave his position as CEO because he has more than half of the voting power at . That essentially gives him control over the company.

facebook-ceo-photo

Source: Stephen Lam / Reuters

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Mark Zuckerberg to Testify before Congress - Facebook Stock Has Plunged 7% (UPD)
Title
Mark Zuckerberg to Testify before Congress - Facebook Stock Has Plunged 7% (UPD)
Description
Facebook Inc. is under firestorm after the bombshell report that data analysis firm Cambridge Analytica that helped Donald Trump win the presidency had used information from millions of Facebook users without their permission. Keep on reading to know more.
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