Under Fire And Losing Trust
Bloomberg Businessweek|March 26, 2018

Facebook’s attempt to play the victim isn’t shifting attention from its product problems

Sarah Frier and Max Chafkin
Under Fire And Losing Trust

On March 20, Facebook employees were quiet even for Facebook employees, buried in the news on their phones as they shuffled to a meeting in one of the largest cafeterias at headquarters in Menlo Park, Calif. Mark Zuckerberg, their chief executive officer, had always told them Facebook Inc.’s growth was good for the world. Sheryl Sandberg, their chief operating officer, had preached the importance of openness. Neither appeared in the cafeteria. Instead, the company sent a lawyer.

The context: reports in the New York Times and the Observer the previous weekend that Cambridge Analytica, the political consulting firm that advised President Trump’s electoral campaign on digital advertising, had effectively stolen personal information from at least 50 million Americans. The data had come from Facebook, which had allowed an outside developer to take it earlier. That developer shared it with Cambridge Analytica.

Facebook tried to get ahead of the story, announcing in a blog post that it was suspending the right-leaning consultancy and that it no longer allowed this kind of data sharing. Its users—a cohort that includes 2 billion or so people—weren’t ready to forgive. The phrase #DeleteFacebook flooded social media. (Among the outraged was WhatsApp co-founder Brian Acton, who in 2014 sold Facebook his messaging app for $19 billion.) Regulators in the U.S. and Europe announced they were opening inquiries. The stock fell almost 9 percent from March 19-20, erasing about $50 billion of value.

This story is from the March 26, 2018 edition of Bloomberg Businessweek.

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This story is from the March 26, 2018 edition of Bloomberg Businessweek.

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