Facebook Inc. said it will end its partnerships with several large data brokers who help advertisers target people on the social network, a step that follows a scandal over how Facebook handles personal information, Reuters reports.
The social media giant is under pressure to improve its handling of data after disclosing that information about 50 million Facebook users wrongly ended up in the hands of political consultancy Cambridge Analytica.
Facebook also adjusted the privacy settings on its service on Wednesday, giving users control over their personal information in fewer taps.
Facebook has for years given advertisers the option of targeting their ads based on data collected by companies such as Acxiom Corp. and Experian PLC.
The tool was especially helpful to advertisers, such as automakers, who do not sell directly to consumers and have relatively little information about who their customers are, according to Facebook.
“While this is common industry practice, we believe this step, winding down over the next six months, will help improve people’s privacy on Facebook,” Graham Mudd, a Facebook product marketing director, said in a statement.
Facebook declined to comment on how the change could affect its ad revenue.
Advertisers would still be able to use third-party data services to measure how well their ads performed by examining purchasing data, the company said.
Facebook’s website lists nine third-party data providers that it has worked with, including Acxiom, Experian, Oracle Data Cloud, TransUnion and WPP PLC.
Facebook also put all its privacy settings on one page and made it easier to stop third-party apps from using personal information. Privacy settings had previously been spread over at least 20 screens.
The company said in a blog post it had been working on the updates for some time but sped things up to appease users’ anger over how the company uses data and as lawmakers around the globe call for regulation.
Facebook’s shares closed up 0.5 percent at US$153.03 on Wednesday. They are still down more than 17 percent since March 16, when Facebook first acknowledged that user data had been improperly channeled in 2014 via a third-party app to Cambridge Analytica, which was later hired by Donald Trump’s 2016 presidential campaign.
The data leak has raised investor concerns that any failure by big tech companies to protect privacy could deter advertisers, who are Facebook’s lifeblood, and lead to tougher regulation.
Chief executive Mark Zuckerberg has repeatedly apologized for the mistakes the company made and has promised to crack down on abuse of the platform and restrict developers’ access to user information.
There is a new Facebook page – called Access Your Information – where users can see what they have shared and manage it.
“The biggest difference is ease of access in settings, which fulfills Mark Zuckerberg’s promise to make the privacy process and permissions more transparent to users,” Wedbush analyst Michael Pachter said.
It was uncertain whether the changes will satisfy lawmakers.
They were announced ahead of a stringent European Union data law which comes into force in May. It requires companies to give people a “right to portability” – to take their data with them – and imposes fines of up to 4 percent of global revenue for companies breaking the law.
Lawmakers in the United States and Britain are still clamoring for Zuckerberg himself to explain how users’ data ended up in the hands of Cambridge Analytica.
Zuckerberg and the CEOs of Alphabet Inc. and Twitter Inc. have been invited by the US Senate Judiciary Committee to testify at an April 10 hearing on data privacy. The US House Energy and Commerce Committee and US Senate Commerce Committee have also asked Zuckerberg to appear at a hearing.
The US Federal Trade Commission has opened an investigation into Facebook, and attorneys representing 37 states are also pressing Zuckerberg to explain what happened.
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