A WSJ report caused the crash of Facebook stock and lowered its prices. The report stated that it had discovered emails that linked Mark Zuckerberg, the CEO of Facebook, to privacy practices of the company. Facebook’s privacy policies and practices have been under the intense scrutiny of late.
This news caused shares to tank by around 2%. Employees at Facebook, as per the report, are now worried that these emails could cause their defenses to be shattered, should they be under scrutiny by FTC. The agency is currently investigating Facebook over its controversial practices.
Currently, the FTC has placed Facebook under investigation regarding Cambridge Analytica’s alleged violation of a 2012 decree between Facebook and the agency, as per the report. These emails, that had been described to Journal reporters, but have not been displayed yet, state that Zuckerberg had knowledge of the controversial practices beforehand. He is alleged to have raised questions regarding the company’s policy of sharing and allowing data to third parties and their developers. This suggests that he was aware of these issues.
Facebook announced in a statement that his company had cooperated with FTC and their investigation at all levels, providing documents, files, and emails numbering thousands. They were still continuing their cooperation and intend to end this concern with an apt solution.
Facebook and all its executives, especially Mark Zuckerberg, strike to stick to all applicable rules and regulations. They stated that no Facebook employee had knowingly violated its policies and obligations that it had to follow under the FTC’s consent order.
The company has been under intense scrutiny due to its privacy policies that came to light in early 2018. The company was alleged to have shared the data of thousands of its customers to third party vendors without obtaining proper consent from the users. Ever since then, the company has been criticized for its policies and lack of proper transparency.