Facebook shares nosedive as political controversy escalates

LUONG THAI LINH

A file picture dated 28 November 2013 shows a man using the social networking site Facebook,19 February 2014

Facebook shares nosedive as political controversy escalates


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Facebook has lost a cumulative 12% of the value of its stock on Monday and Tuesday.

It is estimated that by the closing of the stock market last Friday, the company’s CEO lost €7,4bn ($9bn) of his own property. Twitter and Amazon also saw a nosedive in the value of their stock.

Facebook faces a probe on a massive personal data leak to Cambridge Analytica both in the UK and the US. While Facebook suspended Cambridge Analytica from its platform, the leak dates back to almost three years.

The US Federal Trade Commission has launched a probe against Facebook, after it transpired that there was a leak of personal data of 50 million people. Allegedly, the data ended up being exploited Cambridge Analytica.

This is the second time the company faces a probe in the US; in 2011 the company faced similar allegations for sharing personal data with third parties and reached an out-of-court settlement.

Facebook is due to face the US Congress on Wednesday; the company will face a hearing both in the European Parliament and the British House of Commons.

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