THE SHAMING OF FACEBOOK
Firm’s shares slump over massive data breach as secretive boss is summoned to appear before MPs
facebook’s billionaire founder was last night under huge pressure to answer questions over a data breach affecting 50million users.
Mark Zuckerberg was told to ‘ stop hiding’ by MPs and was summoned before a Parliamentary committee.
The notoriously secretive social media pioneer has so far remained silent on how the Uk firm cambridge analytica (ca) was able to harvest personal information from facebook users and allegedly use it to influence elections.
With a boycott of his company gaining momentum on social media, Mr Zuckerberg’s grip was further weakened as he faced calls to resign – and a business leader declaring him ‘missing in action’. facebook’s share price continued to slump last night, wiping £39billion off the value of the company. The 33-year-old’s estimated £48billion personal fortune also took a £5.3billion hit.
facebook’s stock has now fallen nearly 10 per cent since the start of the week in a backlash over the harvesting scandal.
In further developments, a former employee claimed bosses ignored his warnings of a ‘black market’ for facebook data more than five years ago. The social media giant is now facing major investigations in britain and the Us, while the eU said it was urgently looking into the matter.
Questions were raised as to why facebook sent representatives to the London offices of ca after it was told the Uk Information commissioner’s office ( Ico) was applying for a search warrant.
and alexander Nix, boss of scandal-hit ca, has been suspended after bragging to an undercover channel 4 journalist about how Ukrainian escorts could be used for bribes.
Damian collins, chairman of the commons digital, culture, media and sport committee, said: ‘for facebook to have nothing to say publicly on this is a betrayal of facebook users as well as being damaging to their company.’
The social media giant is facing intense scrutiny over its relationship with ca after it allowed the british firm to access data from tens of millions of accounts.
Whistleblower christopher Wylie said ca used a wealth of personal information from a survey to help clients – including politicians – target facebook users with personalised adverts.
an undercover investigation has since revealed that company boss Mr Nix boasted how ca had essentially masterminded Donald Trump’s election campaign.
The eton-educated ceo and his fellow executives also boasted about how they could entrap politicians with Ukrainian sex workers, used ex- spies to dig dirt on them, and used a secret email system in which messages selfdestructed and left no trace.
facebook has faced fierce criticism across the world after the full extent of its involvement was made public, with ‘Delete facebook’ the top trending hashtag on Twitter yesterday.
In particular, concerns were raised over why representatives were able to enter ca’s offices before the Ico – sparking fears that crucial evidence could have been removed. The watchdog even had to tell facebook to stand down before it left ca’s offices at around 9pm last night.
Mr collins said: ‘ They went in with data analysts and lawyers. Were they going in seeking to recover the data they believe cambridge analytica have got? I think that would have been a direct interference with the Information commissioner’s investigation.’
Yesterday, it also emerged that facebook executives were told about the risk of a major data breach more than five years ago – but looked the other way. former employee sandy Parakilas, who was responsible for policing data breaches, said he assumed there was ‘something of a black market’ for facebook data among outside companies. but he said he was discouraged from investigating it. although facebook has toughened its privacy rules, Mr Parakilas – who is set to give evidence to MPs today – feared the ‘majority of users’ may have had their data harvested unknowingly. asked about how much control facebook had over the outgoing information, the 38year- old told The Guardian: ‘Zero. absolutely none.’
Mr Zuckerberg faces increasing questions over his handling of the scandal. Yesterday, he was sent a letter asking him to appear before MPs after accusing previous executives of being ‘misleading’.
The eU has called for an urgent investigation. Guy Verhofstadt, the chief brexit representative for the european Parliament, tweeted: ‘When is Mark Zuckerberg going to explain what happened with our data? The data breach is an absolute scandal.’
The facebook boss also faces pressure on the other side of the atlantic, with the Us federal Trade commission launching an investigation and calls for him to testify before congress. senator Dianne feinstein said: ‘I think we ought to have the head of facebook, not their lawyer, not their number two, but their number one, come... and state if they’re really prepared to lead the industry to some controls that prevent all this from happening.’
Internet entrepreneur Jason calacanis told cNbc: ‘ Zuckerberg is missing in action. Zuckerberg has done a horrible, horrible job handling this crisis. He’s done an amazing job being a pirate.’
a facebook spokesman said: ‘We have received a letter from the digital, culture, media and sport committee and will of course respond by the given deadline. In the meantime, we continue to engage with the committee and respond to their requests for information.’
a cambridge analytica statement read: ‘Mr Nix’s recent comments secretly recorded by channel 4 and other allegations do not represent the values or operations of the firm and his suspension reflects the seriousness with which we view this violation.’
TAX-dodging social media giant Facebook has long stood accused of offering a platform to pornographers, paedophiles and terrorists.
Now its reputation has taken another hit, wiping £39billion off the value of its shares and leaving its founder Mark Zuckerberg some £5billion the poorer (though few will weep for the 33-year-old, whose holding is still worth £48billion).
Yes, we all knew Facebook harvested customers’ personal details on a cosmic scale. What was unclear until now was just how recklessly it abuses their trust.
It is too much to hope Mr Zuckerberg will answer MPs’ summons to explain how Cambridge Analytica could access details of 50million Facebook users, allegedly exploiting them to try to influence elections?
Nor is he likely to volunteer what, precisely, his representatives were doing at CA’s London offices after they were told the Information Commissioner had applied for a search warrant.
But one thing is abundantly clear. The law and regulators’ powers lag light years behind the age of the internet. They cannot catch up too soon.