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 writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
