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Cambridge Analytica Shuts Down, Declares Bankruptcy After Facebook Data Breach Controversy

DIVYIA ASTHANA | 0
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| May 3 , 2018 , 08:50 IST

The UK-based political consulting firm Cambridge Analytica which became infamous after its involvement in the Facebook data breach came to light, on Wednesday announced that it would be shutting down, ceasing operations and declaring bankruptcy in the US and the UK. Cambridge Analytica's parent company SCL Group is also reportedly shutting down.

According to a statement from the firm, it claimed that it lost clients after the Facebook data breach came to light, when it was revealed that Cambridge Analytica had obtained personal details of Facebook users to influence the US Presidential elections in favour of current president Donald Trump.

ALSO READ: Facebook Confirms, Data Leak May Have Hit As Many As 87 Million Users, Including 5.6 Lakh Indians

"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," the firm said in a statement Wednesday.

"The siege of media coverage has driven away virtually all of the Company's customers and suppliers," the firm said.

"It is no longer viable to continue operating the business," Cambridge Analytica said in a statement.

The firm, however, defended its use of Facebook, saying it was "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."

ALSO READ: Congress Rejects BJP's Allegations Of Links With Cambridge Analytica On Facebook Data Mining

Despite the shutting down of Cambridge Analytica and its parent company, the investigations against it will likely be continuing.

In a statement on Wednesday, Facebook said, "This doesn't change our commitment and determination to understand exactly what happened and make sure it doesn't happen again. We are continuing with our investigation in cooperation with the relevant authorities."

Facebook Inc on April 4 had confirmed that the scale of the data leaks of personal information of its users with political analyst firm Cambridge Analytica is estimated at around 87 million people with 5.6 lakh users from India.

As details of the data breach came to light, as well as reports that Cambridge Analytica had Indian 'clients' as well, political parties accused each other of using Cambridge Analytica's services.