( Reuters ) – Facebook said Wednesday it will end its partnerships with several major data brokers that help advertisers target people in the social network, a move that follows a scandal, like Facebook with personal Information bypasses.
The world's largest social media company is under pressure to improve data handling after it has been revealed that around 50 million Facebook users have mistakenly fallen into the hands of Cambridge Analytica.
Facebook Customized Privacy Settings (19659002) For years, Facebook has given advertisers the ability to target their ads to data collected by companies such as Acxiom and Experian.
The tool has been widely used in certain categories of advertisers ̵
"While this is standard practice in the industry, we believe this move, which expires over the next six months, will improve people's privacy on Facebook." Graham Mudd, a marketing director for Facebook products, said in a statement.
The shares in Acxiom fell after the announcement of Facebook after the bell by more than 10 percent to 25 dollars. Shares in other data brokers remained largely unchanged. A representative for Acxiom could not be reached immediately for a comment.
Facebook declined to comment on how the change could affect its ad revenue.
Advertisers may continue to use third-party data services to gauge how good their ads are Facebook's website lists nine data providers it has worked with, including Acxiom, Experian, Oracle Data Cloud, TransUnion, and WPP.
None of the companies could be instant
Facebook also put all its privacy settings on a single page on Wednesday, making it easier to prevent third-party apps from using personal information. Privacy settings had previously been spread across at least 20 screens, Facebook said.
Facebook said in a blog post that it has been working on the updates for some time, but the rage of users about how the company uses data soothed legislators around the world calling for regulation.
The Facebook stock closed Wednesday at 0.5 percent at $ 153.03. They have still declined more than 17 percent since Facebook was first confirmed on March 16 that user data was misdirected through a third-party app to Cambridge Analytica, which was later discontinued by Donald Trump's presidential campaign in 2016. Data leakage is a concern investors were woken up that a failure by major technology companies to protect privacy could discourage advertisers who are the lifeblood of Facebook and lead to more stringent regulations.
Review by Legislature
Facebook chief executive Mark Zuckerberg has repeatedly pleaded for the mistakes the company has made and has pledged to address the abuse of the Facebook platform and restrict developers' access to user information.
There is a new Facebook page called Access Your Information – where users can see what they have shared and managed it.
"The biggest difference is the ease of access in the settings, which fulfills Mark Zuckerberg's promise to enable the privacy process and the perm" It is uncertain if the changes will suit the legislators.
They were announced ahead of a tough EU data law, which comes into force in May. It requires companies to give people a "right to portability" – take their data – and impose fines of up to 4 percent of global sales on companies that break the law.
Legislators in the United States and Britain still demand Zuckerberg himself explained how users' data came into the hands of Cambridge Analytica.
He wants to testify before the congress, a source told this Tuesday. Facebook has said it has received invitations to testify and speak with lawmakers.
Zuckerberg and the CEOs of Alphabet and Twitter were invited to demonstrate at a hearing on April 10 on privacy. The US House of Representatives' Energy and Commerce Committee and US Senate Commerce Committee have also asked Zuckerberg to appear at a hearing.
The US Federal Trade Commission has opened investigations against Facebook, and lawyers from 37 states are pushing Zuckerberg to explain what happened