Facebook Staring Down US Probe of Data Deals
Facebook is facing an investigation from federal prosecutors delving into its data deals with some of the world’s largest technology companies, according to the New York Times.
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Facebook Inc. (NASDAQ: FB) is facing an investigation from federal prosecutors delving into its data deals with some of the world’s largest technology companies, according to the New York Times.
A New York grand jury subpoenaed records from at least two prominent makers of smartphones and other devices, the newspaper reported, citing people familiar with the requests and without naming the companies.
Each of these companies ranks among more than 150, including Amazon, Apple and Microsoft, that have entered into partnerships with Facebook for access to the personal information of hundreds of millions of its users.
The probes focus on disclosures that Facebook shared the user data of 87 million people with Cambridge Analytica in addition to looking at the data deals.
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Currently, Facebook is facing multiple lawsuits and regulatory inquiries in regards to its privacy practices, including ongoing investigations by the U.S. Federal Trade Commission, the Securities and Exchange Commission and two state agencies in New York. Not to mention, there have been congressional hearings as well.
When talking to the press, Facebook has said is cooperating with investigators in multiple federal probes. Although the New York Times noted Facebook did not address the grand jury inquiry specifically. In a statement, the social media giant said: “We’ve provided public testimony, answered questions, and pledged that we will continue to do so.”
Shares of Facebook were last seen down about 2% at $170.15 on Thursday, in a 52-week range of $123.02 to $218.62. The stock has a consensus price target of $196.46.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
