FACEBOOK SELLING YOUR DATA. Hearing with CEOs would allow the committee to learn “what is being done to protect Americans’ data..” by Todd Horwitz, Bubba Trading

 

Todd’s Daily Video here: https://tinyurl.com/y8jylo5y

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Facebook Inc. confronted an intensifying crisis as political leader in the U.S. and Europe called for aggressive inquiries into whether the technology giant failed to stop improper access and handling of user data, scrutiny that sent the company’s stock to its biggest decline in four years. 

The uproar pushed Facebook’s stock down 6.8% to $172.56 Monday, wiping out about $36 billion in market value as the episode reignited concerns over how Facebook, Alphabet Inc.’s Google and other internet firms handle user data that is at the core of advertising businesses that have made them among the richest companies on Earth.

The backlash has raised anew the prospect of tighter regulation of the social-network company and other big internet firms that already are under scrutiny for how Russia manipulated their platforms before and after the 2016 presidential election. Internally, Facebook executives and employees have fiercely debated how to respond to the additional scrutiny.

U.S. Senators Amy Klobuchar, a Democrat from Minnesota and John Kennedy, a Republican from Louisiana, have called on the chairman of the Judiciary Committee to bring in technology company CEOs, including from Twitter Inc. and Google, for public questioning. In a letter Monday to Senator Chuck Grassley, a Republican from Iowa, Klobuchar and Kennedy said they have “serious concern regarding recent reports that data from millions of American was misused in order to influence voters.”

“The lack of oversight on how data is stored and how political advertisements are sold raises concerns about the integrity of American elections as well as privacy rights,” the senators wrote. A hearing with the CEOs would allow the committee to learn “what is being done to protect Americans’ data and limit abuse of the platforms, as well as to assess what measures should be taken before the next elections.”

Even if marketers stick by Facebook and the company only loses a few of its 2 billion users, there’s a growing sense that government regulation could be on the horizon — and that could be a serious issue for the company.

Keep those stops tight
Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial & Political Commentary

 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.