Cambridge Analytica shuts down following Facebook data scandal
Cambridge Analytica is shutting down following months of media onslaught over its role in the Facebook-data sharing scandal.
The embattled political consultancy said in a press release on Wednesday evening that it was filing for bankruptcy and had appointed Crowe Clark Whitehill LLP as administrators.
“Over the past several months, Cambridge Analytica has been the subject of numerous unfounded accusations and, despite the company’s efforts to correct the record, has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas,” it said.
“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.”
Approximately 87m users of Facebook had their data scraped and passed on to Cambridge Analytica, a political consultancy with high-profile clients including the US president. It was accused of using data taken from personality targeted advertising to exploit voter intentions and ultimately sway the US election in favour of Donald Trump. It has also been suggested the company may have played a role in influencing the Brexit referendum, although the company has strongly denied this.
The scandal wiped more than $50bn from Facebook’s value and forced Mark Zuckerberg to appear before Congress.
Zuckerberg was threatened with a summons by British MPs on Monday, forcing him to appear before parliament the next time he is in the UK if he does not present himself voluntarily.
The billionaire tech tycoon has so far resisted attempts by the Digital, Culture, Media and Sport Select Committee chair Damian Collins to have him give evidence, instead sending his chief technology officer Mike Schroepfer.
Collins told Facebook’s head of public policy Rebecca Stimson the committee was not happy with Schroepfer’s appearance, saying his evidence “lacked many of the important details that we need”.