The Silicon Valley giants are getting knee-capped in the stock market as the premise of users privacy violations pile up on the largest social media firms.
Alphabet’s Google, Facebook and Twitter have all seen shares beaten up over the last two weeks as they all announced user information was not protected and distributed to third-party vendors.
Third-party vendors is code for outfits like Cambridge Analytica, which take demographic data to target political and marketing advertising to users. These data mining firms make 100s of millions of dollars selling this data.
The data is still highly coveted by political campaigns despite the Facebook/Cambridge Analytica scandal in the 2016 presidential election. While outrage at the actions was loud actual legislation was not forthcoming since both parties crave the information.
Google’s breach was so troubling that the company closed down it’s Google+ social media platform. The bigger problem was that Google hid the breach for months in order not to have the government bring further action against the company.
It’s reported that the government’s ears and eyes through the NSA have all the data that was compromised and where it was sold and to whom.
While most of the news coming out about draining the swamp is dealing with career political appointees operating outside the law within government agencies, this data has real-world, actionable ramifications. Public companies have shareholders, who suffer losses as these Silicon Valley firms get involved in partisan politics at the levels inferred by these actions.