Facebook remains under fire Tuesday, after it was learned a political consulting agency, Cambridge Analytica, had mined the data from 50 million users of the social network.
Here are two video reports, the first on how this mornings Asian markets are reacting, and the second is an explanation of the situation.
Asian shares fell on Tuesday after investors dumped U.S. technology shares in the wake of a scandal surrounding Facebook. The retreat came ahead of new Fed chairman Jerome Powell’s first policy meeting, which could offer more clues on the health of the U.S. economy. Sara Hemrajani reports.
The Last Minute: Facebook Data Harvesting Fallout – CBS Boston explains:
Mark Zuckerberg has handed users one more reason to quit Facebook. Newspaper reports that a UK political consultancy used millions of user profiles creates fresh risks at the social network he founded. People are already spending less time on Facebook. The danger is that members may unfriend it altogether.
Facebook lost more than $35 billion of its value on Monday after reports said that more than 50 million people had their personal data misappropriated by political consultancy Cambridge Analytica. The firm used the Facebook trove, obtained without authorization, to build a software program to influence voters, including in the 2016 U.S. presidential election, according to the New York Times and Observer of London.
Multiple investigations have been opened in the United States and Europe as a result – just as Facebook scrambles to address earlier challenges involving fake-news and ad-measurement mishaps. The controversy hasn’t yet shaken the confidence of Madison Avenue, which is still shoveling money to Facebook. Revenue rose 47 percent last year to $41 billion.
The debacles may be taking a toll in other ways though. Zuckerberg said at his last quarterly earnings presentation that the aggregate time users spent on the social network was falling by 50 million hours every day. Advertisers often turn to how long people hang around as a sign of engagement.