by: Elizabeth Balboa, Benzinga Staff Writer
The March tech wreck continues.
Amid fallout from the Cambridge Analytica scandal, the Federal Trade Commission reiterated Monday its commitment to protecting data privacy for consumers interacting with the likes of Facebook, Inc. FB 3.71%.
“Accordingly, the FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook,” Tom Pahl, acting director of the FTC, said in a press release. “Today, the FTC is confirming that it has an open non-public investigation into these practices.”
Facebook stock fell on the news and continued downward, trading around $151 at time of publication.
Why It’s Important
The outcome of the investigation may force a change in the data collection policies of major social media firms, which may subsequently affect monetization and revenue models.
Twitter Inc TWTR 1.74% and Alphabet Inc GOOGL 0.59% GOOG 0.44% also fell on the FTC’s announcement, although the stock were trading in positive territory. Snap Inc SNAP 1.62% was down about 1 percent.
The FTC didn't report a timeline for its investigation.
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