Business Day

British regulator gives Facebook a small but symbolic fine

- Agency Staff London /Reuters

Britain’s informatio­n regulator slapped Facebook with a small but symbolic fine for breaches of data protection law after millions of users’ data were improperly accessed by consultanc­y Cambridge Analytica.

The £500,000 fine is less that 10 minutes’ revenue for the social media firm, which is worth $590bn, but is the maximum amount allowed and emphasises how regulators are finding fault in Facebook’s business practices.

Facebook CEO Mark Zuckerberg has faced questionin­g by US and EU lawmakers over how Cambridge Analytica improperly got hold of the personal data of 87-million Facebook users from a researcher. The social media company has promised to introduce reforms to its policies ahead of local elections in Britain next year.

Updating on the investigat­ion into the use of data analytics by political campaigns, Britain’s Informatio­n Commission­er's Office said it would fine Facebook, though it can respond to the commission­er before a final decision is made.

Informatio­n commission­er Elizabeth Denham said that Facebook had broken the law by failing to safeguard people’s informatio­n and had not been transparen­t about how data were harvested by others on its platform. “New technologi­es that use data analytics to microtarge­t people give campaign groups the ability to connect with individual voters. But this cannot be at the expense of transparen­cy, fairness and compliance with the law,” she said in a statement.

The fine is the maximum allowed under Britain’s old data protection law, although that was replaced by the EU’s General Data Protection Regulation in May, under which companies can be fined up to 4% of revenue for breaches.

Facebook said it was reviewing the report and would respond soon. “As we have said before, we should have done more to investigat­e claims about Cambridge Analytica and take action in 2015,” Erin Egan, Facebook’s chief privacy officer, said in a statement. “We have been working closely with the Informatio­n Commission­er’s Office in their investigat­ion of Cambridge Analytica, just as we have with authoritie­s in the US and other countries.”

British MPs have launched an inquiry into “fake news“and its effect on election campaigns, and have increasing­ly focused on Cambridge Analytica.

The Informatio­n Commission­er’s Office said it was providing the interim report to help that inquiry.

The chairman of the parliament­ary inquiry, Damian Collins, said that other apps could also have collected data on users in a similar way to the Cambridge Analytica data.

“Given that the Informatio­n Commission­er’s Office is saying that Facebook broke the law, it is essential that we now know which other apps that ran on their platform may have scraped data in a similar way,” he said.

Cambridge Analytica, which was hired by Donald Trump in 2016, has denied its work on the US president’s successful election campaign made use of data.

But the informatio­n commission­er’s report said other regulatory action would include a criminal prosecutio­n against Cambridge Analytica’s parent firm, SCL Elections, for failing to deal with the regulator’s enforcemen­t notice.

WE HAVE BEEN WORKING CLOSELY WITH THE [OFFICE] IN THEIR INVESTIGAT­ION OF CAMBRIDGE ANALYTICA

 ?? /Reuters ?? Oversight: Facebook CEO Mark Zuckerberg testifies at a Senate hearing in Washington in April 2018.
/Reuters Oversight: Facebook CEO Mark Zuckerberg testifies at a Senate hearing in Washington in April 2018.

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