Facebook after working on the violated content issue is presently going through tough days owing to privacy issues. The social media giant is witnessing considerable business risks owing to privacy regulations of European Union that are expected to come into effect in May. This comes on when a threatening actuality released over the weekend with a disclosure that a divisive political consulting firm had inappropriately acquired personal data of 50 Million Facebook users.
Privacy specialist stated that revelation that Facebook data fetched through the quiz and sold to Cambridge Analytica, a consulting firm, by a researcher is kind of case the new GDPR (General Data Protection Regulation) is expected to prevent or castigate.
This has put Facebook in a dual risk situation. If the regulations are obeyed than it will result in losing European users and keeping them out of the online ads, which have helped Facebook reap maximum revenue. While on the other side going against the GDPR obligation, would force Facebook to pay fine up to 4% of its annual revenues.
Facebook critic and Austrian privacy campaigner, Max Schrems said, “On the grounds of Cambridge Analytica incident, if this incident would have happened post implementation of GDPR law it would have cost 4% of the annual revenue of Facebook.
The social media giants share fell by 7% which is believed to be the biggest crash since 2014, which wiped away approximately $40 Billion of the firm’s valuation.
Austrian privacy campaigner first raised concerns in 2011, as for how simple it would be to fetch data for third-party apps from unaware friends of Facebook users. The company has tautened its control on such breaches after it came across the suspected mistreatment by Cambridge Analytica in 2015.
A non-profit organization is established by Schrems named NOYB (None Of Your Business) which hires lawyers and discovers the opportunities for “strategic litigation” in terms of GDPR privacy violations.