DATA SCANDAL SENDS FACEBOOK SHARES PLUNGING

Zuckerberg ordered to appear before Congress along with Google, Twitter CEOs

FACEBOOK shares plunged on Monday as the social media giant was pounded by criticism at home and abroad over revelations that a firm working for Donald Trump’s presidential campaign harvested and misused data on 50 million members.

Calls for investigations came on both sides of the Atlantic after Facebook responded to explosive reports of misuse of its data by suspending the account of Cambridge Analytica, a British firm hired by Trump’s 2016 campaign.

Democratic Senator Amy Klobuchar and Republican John Kennedy called for Facebook chief executive officer (CEO) Mark Zuckerberg to appear before Congress, along with Google and Twitter’s CEOs.

The lawmakers said the companies “have amassed unprecedented amounts of personal data” and the lack of oversight “raises concerns about the integrity of American elections as well as privacy rights”.

Facebook’s chief of security Alex Stamos said his role had shifted to focusing on emerging risks and election security at the global social network.

Stamos revealed the change after The New York Times reported that he was leaving Facebook in the wake of internal clashes over how to deal with the platform being used to spread misinformation.

“Despite the rumours, I’m still fully engaged with my work at Facebook,” said Stamos on his Twitter account.

Senator Ron Wyden asked Facebook to provide more information on what he called a “troubling” misuse of private data that could have been used to sway voters.

In Europe, officials voiced similar outrage. Vera Jourova, the European commissioner for justice, consumers and gender equality, called the revelations “horrifying, if confirmed”, and vowed to address concerns in the United States this week.

Elizabeth Denham, Britain’s Information Commissioner who regulates the sector in the country, announced her office would seek a court warrant yesterday to search Cambridge Analytica’s computer servers .

She said the company had been “uncooperative” to requests for access to its records and missed a Monday deadline stipulated.

But Cambridge Analytica has “strongly denied” misusing the data for the Trump campaign.

According to a joint investigation by The New York Times and Britain’s Observer, Cambridge Analytica was able to create psychological profiles on 50 million Facebook users through the use of a personality prediction app that was downloaded by 270,000 people, but also scooped up data from friends.

Meanwhile, Facebook said it had hired a digital forensics firm to examine how the data leak occurred and to ensure that any data collected had been destroyed.

Facebook also shares skidded 6.8 per cent by the close of the Nasdaq on Monday amid concerns about pressure for new regulations that could hurt its business model.

The shares slipped another per cent or so to US$170 (RM666) in after-market trades.