3 May 2018

Cambridge Analytica shutting down

12:51 pm on 3 May 2018

Political consultancy Cambridge Analytica, the firm at the centre of the Facebook data-sharing scandal, is shutting down.

Cambridge Analytica CEO Alexander Nix

Cambridge Analytica CEO Alexander Nix Photo: Gizmodo

The company has been accused of harvesting the personal data of up to 87 million Facebook users.

The data was then allegedly used to influence voter opinion in the last US presidential election and the Brexit vote, along with other polls.

The Wall Street Journal has reported the company is closing down because of mounting legal fees associated with its investigation into whether there had been any wrongdoing regarding its mining of Facebook data.

The social network said its own probe into the matter would continue.

"This doesn't change our commitment and determination to understand exactly what happened and make sure it doesn't happen again," said a spokesman.

"We are continuing with our investigation in cooperation with the relevant authorities."

A statement on Cambridge Analytica's website said it had been the subject of "numerous unfounded accusations" and had been vilified for activities that were "not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas.

"Despite Cambridge Analytica's unwavering confidence that its employees have acted ethically and lawfully ... the siege of media coverage has driven away virtually all of the company's customers and suppliers.

"As a result, it has been determined that it is no longer viable to continue operating the business."

The statement added that its parent company SCL Elections was also commencing bankruptcy proceedings.

Cambridge Analytica's chief executive Alexander Nix was suspended in March after secretly being recorded by Channel 4 News.

In the video he suggested that the London-based firm had helped run Donald Trump's digital election campaign. He also detailed ways that it could discredit other politicians, including sending "girls around to the candidate's house".

Cambridge Analytica subsequently said that it had only licensed 30 million records belonging to US citizens from the data-collecting app's creator Dr Aleksandr Kogan, and that they had not been used it in the US Presidential Election.

The firm added that it had since deleted all the information despite claims to the contrary by others.

British MP Damien Collins, who is chairman of the Parliamentary Committee scrutinising the company, said there were still many questions to be answered.

"We've gotta make sure that this is not an attempt to run and hide, that these companies aren't closing down to try and avoid being rigourously investigated for the allegations that have been made against them about the way they've used data, the ethics and legality of their practices.

"Those investigations have to continue, we have to know what happened. It's very easy to continue to close down companies and for the people behind those companies to re-emerge elsewhere with their data and their contacts intact."

In testimony to Congress about the scandal, Mr Zuckerberg had said that his personal details were among those that had been harvested.

- BBC

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