Cambridge Analytica shuts down operations
> Marketing firm fails to bounce back after Facebook data scandal
LONDON: Cambridge Analytica, the British marketing analytics firm, said Wednesday it was closing and would file for insolvency in Britain and the US after failing to recover from the Facebook data scandal.
The decision follows weeks of intense pressure on the company, hired by Donald Trump’s presidential campaign, after allegations emerged it may have hijacked up to 87 million Facebook users’ data.
It claimed it has been “vilified” by the “numerous unfounded accusations” which torpedoed its business and left the firm with “no realistic alternative”.
“Despite Cambridge Analytica’s unwavering confidence that its employees have acted ethically and lawfully ... the siege of media coverage has driven away virtually all of the company’s customers and suppliers.
“As a result, it has been determined that it is no longer viable to continue operating the business,” it said in a statement.
Cambridge Analytica has offices in London, New York, Washington, as well as Brazil and Malaysia.
It drew attention after former Trump chief strategist Steve Bannon reportedly once sat on its board and was bankrolled to the tune of US$15 million (RM59 million) by Republican billionaire donor Robert Mercer.
It first became embroiled in scandal in March when whistleblower Christopher Wylie, a 28-year-old former analyst for the firm, revealed it had created psychological profiles of tens of millions of Facebook users via a personality prediction app.
The revelations instantly reverberated around the world, wiping billions from the social media giant’s market value and drawing scrutiny from politicians and regulators on both sides of the Atlantic.
Moreover, its CEO, Alexander Nix, was suspended within days after he was filmed by undercover reporters bragging about ways to win political campaigns, including through blackmail and honey traps.
As the crisis intensified, Facebook chief Mark Zuckerberg was forced to apologise to its billions of users amid a small but growing exodus from the site.
He appeared before Congress for a twoday grilling and has since vowed to overhaul the way Facebook shares its users’ data.
In Britain, regulators ratcheted up a probe into Cambridge Analytica, raiding its London offices, and later extending the probe to 30 groups, including Facebook.
A second whistleblower from the firm also emerged at a parliamentary hearing in April claiming Britons’ personal data may have been misused by a pro-Brexit campaign ahead of the 2016 referendum. – AFP