Facebook stock plunged Monday after the Federal Trade Commission (FTC) announced it was investigating the social media company over a data breach affecting roughly 50 million people.
Shares in Facebook fell more than 6 percent, roughly $10, after the FTC confirmed it was probing the company over potential violations of a 2011 settlement regarding the use of customer data.
“The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices,” the FTC said in a statement.
The social media company has been mired in controversy over reports that Cambridge Analytica, a political firm that worked on President Trump’s 2016 campaign, used data from roughly 50 million Facebook users without permission.
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SOURCE: The Hill, Sylvan Lane