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Facebook shares slip as scrutiny continues | Facebook shares slip as scrutiny continues |
(35 minutes later) | |
Facebook shares continued to slide on Tuesday, amid ongoing furore concerning the use of data collected by the social network. | Facebook shares continued to slide on Tuesday, amid ongoing furore concerning the use of data collected by the social network. |
The firm's stock fell 4% in mid-day trading in New York, following a steep decline a day earlier. | |
The concerns infected fellow social media company Twitter, which was down more than 10%. | |
Investors are reacting to calls for tighter regulation of tech firms from politicians in the US, UK and Europe. | Investors are reacting to calls for tighter regulation of tech firms from politicians in the US, UK and Europe. |
On Tuesday, US media reported that the Federal Trade Commission, a US regulator, is looking into Facebook's handling of personal data. | |
The questions follow allegations that 50 million Facebook users' private information was misused by a political consultancy firm. | |
Facebook has said it is expecting questions but has not been told it is under investigation. | |
"We remain strongly committed to protecting people's information," Facebook deputy chief privacy officer Rob Sherman said. "We appreciate the opportunity to answer questions the FTC may have." | |
The firm in 2011 reached a settlement with the commission over charges that it deceived consumers about what data was shared and made public. The agreement involved monitoring the issue for 20 years, and raises the potential for significant fines in the event of violations. | |
Months of pressure | Months of pressure |
The scrutiny of Facebook comes after several months of pressure, following allegations that Russia used the social networks to influence the 2016 presidential election. | |
The firm earlier announced changes to its news feed after the criticism and warned investors that the tweaks might hurt profits in the short-run. | The firm earlier announced changes to its news feed after the criticism and warned investors that the tweaks might hurt profits in the short-run. |
But Mr Zuckerberg told financial analysts last month that the change was important to the firm's long-term prospects, noting the ongoing debate about the utility of social media sites. | But Mr Zuckerberg told financial analysts last month that the change was important to the firm's long-term prospects, noting the ongoing debate about the utility of social media sites. |
Calls for users to delete Facebook have gained attention since the incident. | |
Tuesday's share price decline came after Facebook shares fell almost 7% on Monday. The firm's share price is now trading around $164, similar to September levels. |