Both Mark Zuckerberg and COO Sheryl Sandberg are hiding out as Facebook shares fall through the floor, losing $64 billion dollars in less than three days. The latest scandal is over President Trump’s data company getting information from Facebook they allegedly used to help the president win the election. Facebook suspended data analytics firm, Cambridge Analytica for doing exactly what Obama did in 2012.
Facebook is now being sued by people who bought their stock over the past year or so because the company didn’t warn of problems in the information provided to potential buyers of their stock. The good news is that 5 billion of the 64 billion lost was owned by Mark Zuckerberg himself. Facebook’s problems are on top of the news that engagements are way down. That makes sense as Facebook changed it’s algorithm to hide conservative content.
There is good news for the consumer and especially for conservatives in all of this. Both parties are now looking to regulate Facebook, probably as a public utility, so privacy concerns can be addressed by people not profiting from the sale of their information. It will also mean that Facebook will no longer be able to decide what content users can see according to Facebook’s liberal ideology.
The multi-billion-dollar social media platform claims disbarment of the firm is necessary to ensure people’s information is protected and user data isn’t being manipulated. Reports about Facebook’s inability to address Cambridge Analytica’s activity could generate calls for new user privacy regulations.
Facebook allowed University of Cambridge psychology Prof. Aleksandr Kogan to develop an app to collect data on friends using features such as “likes.” The company inadvertently gave Kogan powers with unintended consequences, and upon figuring out his tactics and purposes, it barred the alleged violators. Kogan was reportedly able to create more than 50 million profiles using the trend and characteristics data before providing them to Cambridge.
Anything that’s bad for Facebook leadership is good for Facebook consumers.