Jun 4, 2018

Go deeper: Inside Facebook's newest data privacy black eye

Illustration: Rebecca Zisser/Axios

Facebook faces a raft of new criticisms in the wake of a New York Times story about the social network's program of sharing user data with smartphone makers.

Why it matters: Critics of the company in Congress and the media are piling on Facebook and framing this story as "Cambridge Analytica II." But industry insiders are questioning the import of the new revelations, since device makers are a unique and trusted class of "third party" data users — and also since there's no evidence of actual misuse of data this time around.

Be smart: Interoperability is what makes tech products and apps work. Facebook argues that the data access it afforded hardware partners allowed them to "recreate Facebook-like experiences" on their devices. In other words: This was simple software integration, not nefarious data poaching.

Yes, but: Facebook is already winding down the partner programs under which these data integration efforts operated — so they couldn't have been that essential.

The FTC angle:

  • The Times story also suggested that Facebook's data sharing with device makers may have violated the company's 2011 consent decree with the Federal Trade Commission.
  • Rep. Frank Pallone (D-NJ), ranking minority member of the House energy and commerce committee, has called on the FTC to review the question.
  • The agency is already reviewing Facebook’s actions in the Cambridge Analytica scandal after allegations that it violated the consent decree.

The bottom line: Everything Facebook does with data is now coming under a microscope, and instead of getting out ahead of this story, the company just allowed itself to take another black eye.

Go deeper

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 2 p.m. ET: 1,464,852 — Total deaths: 85,397 — Total recoveries: 315,105Map.
  2. U.S.: Total confirmed cases as of 2 p.m. ET: 402,923 — Total deaths: 13,007 — Total recoveries: 22,717Map.
  3. State latest: New York Gov. Andrew Cuomo issued an executive order for New Yorkers to vote by absentee ballot for June 23 primaries.
  4. Federal government latest: The U.S. has begun to see "glimmers of hope" despite its highest recorded number of deaths in 24 hours, Dr. Anthony Fauci said.
  5. Business updates: Roughly one-third of U.S. apartment renters didn't make April payments — The Fed will lift Wells Fargo's asset cap to help small business lending.
  6. 🎧 Podcast: The battle over billionaire coronavirus saviors
  7. What should I do? Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Sen. Kelly Loeffler liquidates stocks after uproar over coronavirus sell-off

Sen. Kelly Loeffler. Photo: Madnel Ngan/AFP via Getty Images

Sen. Kelly Loeffler (R-Ga.) and her husband Jeffrey Sprecher are liquidating their stock portfolio and moving holdings into exchange traded funds (ETFs) after coming under fire for purchasing and selling roughly $1.4 million in stock just before the market crashed in response to the coronavirus pandemic.

Why it matters: Loeffler, who faces a competitive reelection fight in November, is one of several senators under fire for selling shares shortly after a private briefing on the coronavirus — sparking accusations of insider trading.

Sanders: "While this campaign is coming to an end, our movement is not"

Addressing his supporters via livestream after suspending his campaign, Bernie Sanders congratulated Joe Biden on his presumptive victory in the 2020 Democratic presidential primary while making clear that his fight for progressive ideas will not end with his candidacy.

What he's saying: "While this campaign is coming to an end, our movement is not. Dr. Martin Luther King Jr. reminded us that 'the arc of the moral universe is long, but it bends towards justice.' The fight for justice is what our campaign has been about. The fight for justice is what our movement remains about."