European Officials Pledge to Probe Facebook's Handling of User Data -- Update
March 19 2018 - 10:49AM
Dow Jones News
By Natalia Drozdiak in Brussels and Sam Schechner in Paris
European Union officials said they would probe Facebook Inc.'s
handling of user data on Monday, after the social network said it
is investigating whether a firm linked to the 2016 Trump campaign
improperly kept user's personal data for years despite saying it
had destroyed those records.
"Allegations of misuse of Facebook user data is an unacceptable
violation of our citizens' privacy rights. The European Parliament
will investigate fully, calling digital platforms to account," the
parliament's president, Antonio Tajani, said on his official
Twitter account.
Facebook shares dropped more than 5% in early trading.
The EU's justice chief, V ra Jourová, described the news that
data was misused for political purpose as "horrifying, if
confirmed," adding that she expected "companies to take more
responsibility when handling our personal data."
Ms. Jourová said she would seek further clarifications from
Facebook and would discuss the matter with U.S. government
officials on her scheduled trip to the U.S. this week. Ms. Jourová
is set to meet with Attorney General Jeff Sessions and Commerce
Secretary Wilbur Ross.
A spokesman for Facebook Monday referred to the company's
comments over the weekend that the firm is "moving aggressively to
determine the accuracy of these claims."
Sparks are flying because the revelation links two of the
biggest and most politically sensitive complaints about Facebook.
Privacy activists have long accused Facebook of taking too much
information about users, leading to investigations in several parts
of Europe. More recently, evidence has emerged--and the company has
acknowledged--that politicians and Russian hackers attempted to
manipulate the social network in an effort to influence elections
in the U.S., U.K. and elsewhere.
Now the two threads are joined, with the granularity of
Facebook's user data allegedly being illicitly repurposed by
political operatives.
The EU officials' comments come after U.S. and British lawmakers
slammed Facebook over the weekend for not providing more
information about how data firm Cambridge Analytica came to access
information about potentially tens of millions of users without
their explicit permission.
A spokesperson for Cambridge Analytica didn't immediately
respond to a request for comment on Monday.
Cambridge Analytica was a top vendor to Mr. Trump's 2016
campaign and has come under scrutiny in special counsel Robert
Mueller's investigation into whether Trump associates colluded with
Russia's efforts to interfere in the U.S. election. Mr. Trump has
denied any collusion by his campaign with the Russians, and Moscow
has denied meddling in the election.
Cambridge Analytica, which is an affiliate of British firm SCL
Group Ltd., is also under scrutiny for whether it played a role in
the U.K.'s 2016 Brexit referendum, something the company has
denied.
Late Friday, Facebook said it suspended Cambridge and two
individuals-- Aleksandr Kogan, a psychology professor from the
University of Cambridge, and Christopher Wylie, who helped found
Cambridge. Facebook said it learned in 2015 that Mr. Kogan broke
Facebook policy and shared the user data with third parties. The
company said it demanded he and third parties with access to the
data delete those records but learned this month the data hadn't
been destroyed. Facebook has argued the matter didn't constitute a
data breach.
Mr. Wylie revealed to the New York Times and U.K. newspaper The
Observer how Cambridge used personal data without authorization to
build a system to target individual U.S. voters with political
advertisements.
Ms. Jourova said she welcomed an investigation by the U.K.
Information Commissioner's Office, an independent body tasked with
protection of personal data, and was "ready to help."
Elizabeth Denham, Information Commissioner, Monday said her
office was pursuing a number of lines of inquiry and that "any
criminal or civil enforcement actions arising from it will be
pursued vigorously."
Data privacy is a sensitive issue in Europe due to its history
of communist and Nazi governments spying on their citizens.
European privacy rules generally stricter than in the U.S. and set
to become even more so when new regulations enter into force in
May. Under the so-called general data protection regulation,
national privacy authorities will gain more powers and can hit
companies with fines as high as 4% of global revenue if they breach
the rules.
While the European Parliament doesn't have the power to issue
fines, it could organize hearings that would require executives to
provide detailed clarifications and defend themselves in public. In
the U.K., Damian Collins, the British lawmaker who chairs a
parliamentary committee on media and culture, said he intended to
ask Facebook Chief Executive Mark Zuckerberg to testify, or send a
senior executive to do so, as part of an inquiry into how
social-media manipulation affected the outcome of Britain's
referendum on exiting the European Union.
James Slack, a spokesman for U.K. Prime Minister Theresa May,
said the allegations against Cambridge Analytica were concerning.
"It is essential that people can have confidence that their
personal data will be protected and used in an appropriate way," he
said Monday, adding that it's right Britain's information
commissioner is investigating the matter. "We expect Facebook,
Cambridge Analytica and all the organizations involved to cooperate
fully."
Jenny Gross in London contributed to this article.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com and Sam
Schechner at sam.schechner@wsj.com
(END) Dow Jones Newswires
March 19, 2018 10:34 ET (14:34 GMT)
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