Facebook is slapped with first fine for Cambridge Analytica scandal

Facebook is staring down its first fine for allowing Cambridge Analytica to improperly access data about millions of people, potentially opening the door for governments around the world to slap the social media giant with other tougher penalties and stricter regulation.

On Tuesday, U.K. watchdogs announced a $664,000 preliminary fine — the maximum amount allowed — after finding Facebook lacked strong privacy protections and overlooked critical warning signs that might have prevented Cambridge Analytica from trying to manipulate public opinion on behalf of clients around the world, including those who sought to withdraw Britain from the European Union in 2016.

The penalty from the U.K. data watchdog, called the Information Commissioner’s Office, could change as the agency discusses the matter further with Facebook. Normally, the ICO does not reveal its initial findings but said it had done so in this case because of the heightened public interest in the matter. It promised another update in October.

Erin Egan, Facebook’s chief privacy officer, acknowledged in a statement Tuesday that Facebook “should have done more to investigate claims about Cambridge Analytica and take action in 2015.”

The British findings highlight that the fallout from Facebook’s Cambridge Analytica scandal is only beginning. The U.K.’s early efforts could inform ongoing investigations elsewhere in Europe as well as the United States, where a probe by the Federal Trade Commission could result in a penalty well into the hundreds of billions of dollars. The FBI and the Securities and Exchange Commission are also looking into Facebook’s ties to Cambridge Analytica.

Facebook’s Egan referred to the numerous investigations involving the company. “We have been working closely with the ICO in their investigation of Cambridge Analytica, just as we have with authorities in the U.S. and other countries,” she said. “We’re reviewing the report and will respond to the ICO soon.”