Cambridge Analytica row: 10 things you need to know about controversy that costed Facebook nearly $50 billion

Over the past several days, Facebook has been facing an investigation by the Federal Trade Commission and calls for legislative testimonies in the US and Europe.

Reports alleged that personal data from as many as 50 million people might have been used improperly in Donald Trump's 2016 presidential campaign by Cambridge Analytica, a UK-based political research firm.

Amidst a global outrage against Facebook, the Silicon Valley-based company, which currently has 2 billion monthly active users, has suffered a loss of USD 50 billion in market value.

But what has really happened and why the Indian political parties are reacting to it, below we have listed 10 developments related to the issue. 

1. Reports surfaced that the data analytics firm, Cambridge Analytica that helped Donald Trump get elected president was able to amass data on 50 million users Facebook users without their permission that has sent Facebook’s market value down nearly $50 billion since Friday.

2. Cambridge Analytica whistleblower Christopher Wylie told the Washington Post on Tuesday that in 2014 conservative strategist Steve Bannon, who would go on to be Trump's White House adviser, oversaw the firm's early efforts to collect Facebook data to build detailed profiles on millions of American voters.

3. US and European lawmakers have demanded an explanation of how Cambridge Analytica gained access to user data in 2014 and why Facebook failed to inform its users, raising broader industry questions about consumer privacy.

4.Facebook said it had been told by the Federal Trade Commission (FTC), the leading U.S. consumer regulator, that it would receive a letter this week with questions about the data acquired by Cambridge Analytica. It said it had no indication of a formal investigation.

"The entire company is outraged we were deceived," Facebook said in a statement on Tuesday. "We are committed to vigorously enforcing our policies to protect people’s information and will take whatever steps are required to see that this happens.”

5.If the FTC finds Facebook violated terms of the consent decree, it has the power to fine the company thousands of dollars a day per violation, which could add up to billions of dollars.

6. Facebook said it was pressing Cambridge Analytica for answers, after getting assurances from the firm in 2015 that it had deleted all data. Facebook has hired forensic auditors from the firm Stroz Friedberg to help.

7. Back in India, IT and Law Minister Ravi Shankar Prasad has warned social media companies such as Facebook of stringent actions if there was any attempt to influence the electoral process of any country.

8. In a damage control mode, Mark Zuckerberg announced a slew of measures aimed to "secure the platform further and make the Facebook community safer for everyone going forward".

For this, the Facebook founder said, his company will take necessary steps to prevent the data misuse.

9. Mark Zuckerberg, 33, through a lengthy Facebook post on Wednesday, broke his silence over the alleged privacy scandal that hit the social media giant.

"I started Facebook, and at the end of the day, I'm responsible for what happens on our platform. I'm serious about doing what it takes to protect our community," Zuckerberg said.

10. Meanwhile, UK-based firm linked to President Donald Trump, Cambridge Analytica is now facing a government search of its London office, questions from US state authorities, along with a demand by Facebook that it submit to a forensic audit.