Data firm em­broiled in Face­book scan­dal to close

Honolulu Star-Advertiser - - BUSINESS REPORT -

NEW YORK >> Cam­bridge An­a­lyt­ica, the Trump-af­fil­i­ated data firm at the cen­ter of Face­book’s worst pri­vacy scan­dal in his­tory, is declar­ing bank­ruptcy and shut­ting down.

The Lon­don firm blamed “un­fairly neg­a­tive me­dia cov­er­age” and said it has been “vil­i­fied” for ac­tions it says are both le­gal and widely ac­cepted as part of on­line ad­ver­tis­ing.

Cam­bridge An­a­lyt­ica said it has filed pa­pers to be­gin in­sol­vency pro­ceed­ings in the United King­dom and will seek bank­ruptcy pro­tec­tion in a fed­eral court in New York.

“The siege of me­dia cov­er­age has driven away vir­tu­ally all of the com­pany’s cus­tomers and sup­pli­ers,” Cam­bridge An­a­lyt­ica said in a state­ment.

Face­book said it will keep look­ing into data mis­use by Cam­bridge An­a­lyt­ica even though the firm is clos­ing. And Jeff Ch­ester of the Cen­ter for Dig­i­tal Democ­racy, a dig­i­tal ad­vo­cacy group in Washington, said crit­i­cisms of Face­book’s pri­vacy prac­tices won’t go away just be­cause Cam­bridge An­a­lyt­ica has.

“Rather than re­joic­ing that a bad ac­tor has met its just re­ward, we should rec­og­nize that many more Cam­bridge An­a­lyt­ica-like com­pa­nies are op­er­at­ing in the con­joined com­mer­cial and po­lit­i­cal mar­ket­place,” Ch­ester said.

In re­cent months, ex­ec­u­tives at Cam­bridge An­a­lyt­ica and SCL Group have moved to cre­ated a new firm, Emer­data, based in Bri­tain, ac­cord­ing to Bri­tish records.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.