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Mark Zuckerberg finally speaks on Cambridge Analytica: We need to fix 'breach of trust'

Zuckerberg took responsibility for what he called 'a breach of trust between Facebook and the people who share their data with us and expect us to protect it.'
Facebook CEO Mark Zuckerberg (Photo: Facebook)

Facing growing criticism of his leadership of the social media giant he co-founded, CEO Mark Zuckerberg finally broke his silence on the escalating crisis over how Facebook handles people's private information.

Zuckerberg took responsibility for what he called "a breach of trust between Facebook and the people who share their data with us and expect us to protect it."

"We need to fix that," he said.

Zuckerberg outlined a three-point plan: investigate all third-party apps with access to large amounts of information, further restrict third party access to prevent future abuses, make sure users understand which apps they've given access to.

"I'm serious about doing what it takes to protect our community," he said in a Facebook post.

The remarks, coming four days after the news broke that Cambridge Analytica pilfered sensitive information from tens of millions of Facebook users, were aimed at restoring public trust in the social media giant.

That trust may be hard to win back. Zuckerberg’s silence in the face of waves of criticism, fanned the flames of the controversy, with U.S. and European lawmakers demanding answers and Facebook shares tumbling.

"Facebook is exhibiting signs of systemic mismanagement, which is a new concern we had not contemplated until recently," Pivotal Research Group analyst Brian Wieser wrote in a research note Wednesday. "Investors now have to consider whether or not the company will conclude that it has grown in a manner that has proven to be untenable or whether it needs to significantly improve how it is managed."

Zuckerberg's remarks were his first since bombshell reports from the New York Times and the Guardian's The Observer alleged British data analysis firm Cambridge Analytica improperly obtained and retained the personal information of 50 million Facebook users without their permission, 30 million of them with enough details to match users to other records and build profiles of them. Cambridge Analytica has ties to President Donald Trump's 2016 campaign.

Facebook disclosed late Friday that it knew Cambridge Analytica had taken users' information without their consent by obtaining it from a psychology researcher who legitimately gleaned details on users' likes and habits via a personality quiz app in 2013.

The growing scandal has given Facebook users an inside look into what happens to their data in the hands of outside parties and what, if anything, Facebook does about it. Facebook admits it knew Cambridge Analytica had obtained user information without its consent, but it didn't verify that the firm had deleted it — and it didn't notify users.

U.S. lawmakers have called on Zuckerberg to testify before Congress. Facebook met with lawmakers Tuesday and planned to meet again Wednesday to discuss the case.

The Federal Trade Commission is probing Facebook over the matter, and the social network faces investigations from attorneys general in both New York and Massachusetts.

Cambridge Analytica, which had said all data obtained through Facebook was done "legally and fairly," revealed Tuesday it suspended CEO Alexander Nix pending a full investigation.

Facebook (FB) shares were up 0.6% Wednesday to $169.17. Shares have fallen more than 10% this week, including a 7% drop on Monday, the stock's worst drop in four years, according to FactSet.

Facebook CEO Zuckerberg lost almost $5 billion as the company's market cap fell more than $36 billion to $501.3 billion.

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