Facebook Under Joint Investigation By DOJ, FBI, SEC, and FTC

ASSOCIATED PRESS

Shares of Facebook Inc fell 2 per cent on Tuesday, after a report that a federal probe on the data breach linked to Cambridge Analytica had been broadened and would include more government agencies.

Zuckerberg, testifying before lawmakers on Capitol Hill, and Facebook has since sent Congress hundreds of pages in answers to lawmaker's follow-up questions.

The DOJ probe follows Facebook's disclosures in March that Cambridge Analytica, a digital consultancy that had ties to the Trump presidential campaign, improperly accessed personal information on up to 87 million of the social network's users.

The FTC previously released a statement after the Cambridge Analytica news broke in March that it had an "open, non-public investigation" into the privacy practices of Facebook. Zuckerberg's evasive congressional testimony won't help the case, either.

The problem for the Silicon Valley company would be when this investigation discovers that Facebook either lied during the testimonies and disclosures or that it's found violating the 2011 consent decree made with the FTC. In addition, they want to know exactly what type of data was obtained by Cambridge Analytica and how the latter got its hands on it.

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Facebook confirmed that it is in discussions with the federal agencies and sharing information when requested.

Facebook acknowledged the inquiry, but didn't comment on the report of an expanded probe.

"We are cooperating with officials in the U.S., United Kingdom and beyond".

"The fact that the Justice Department, the FBI, the SEC and the FTC are sitting down together does raise serious concerns", former FTC Bureau of Consumer Protection chief David Vladeck told the Post, adding that the combination of agencies involved "does raise all sorts of red flags".

Facebook's stock dropped more than 1% in after-hours trading following the news, which came after the close of regular market trading.

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