Many high profile firms have suspended the ties with Facebook, Inc. (NASDAQ:FB) amid the data scandal of Cambridge Analytica. A researcher of Cambridge Analytica has compromised the data of 50 million users with the permission of Facebook for the benefit of Mr. Donald Trump campaign.
The shocking news was revealed earlier this month and as a result, the stock of Facebook have plummeted. Federal Trade Commission has ordered an investigation into the data leak at Facebook. The Chief Executive Officer of Facebook, Mr. Mark Zuckerberg has expressed sorry for the data leak. He vowed to protect the data of people with more protective measures. The company will identify the apps that still leaks the data and appropriate patches will be implemented to ensure the basic responsibility of protecting the user’s data. Facebook will conduct an audit of the apps and those that do not accept the audit will be banned.
He further said new protective measures prevent the meddling of nations like Russia in the election of other nations. His company is already working on this issue. The team at Facebook is committed to preventing the meddling of other nations in the upcoming large elections in India and Brazil etc. The CEO will send an executive familiar with all the activities to testify before the Congress and helps the Congress what it wants to learn.
However, most of the companies are not convinced about the assurances provided by the Facebook. Some of the firms that have suspended the ties with Facebook include Tesla Inc (NASDAQ:TSLA), Mozilla, Pep Boys, Sonos, and Commerzbank.
When a user shares the data on Facebook, it collects the data including gender, interests and other vital information to the advertising companies. The ad companies will use the data and launches targeted ads to boost their business and revenues. But Facebook says the opposite.
Mr. Brian Acton, the co-founder of Whatsapp is telling the users to delete the account on Facebook immediately. He already left Whatsapp and formed a new company of his own. He has divested Whatsapp to Facebook for $16 billion in the year 2014.