Tech firms like Facebook should be made liable for “harmful and misleading” material on their websites and pay a levy so they can be regulated, British lawmakers said, warning of a crisis in democracy due to misuse of personal data.
Facebook has increasingly become a focus of the media committee’s inquiry into “fake news” after the data of 87 million users was improperly accessed by British-headquartered consultancy Cambridge Analytica.
Facebook executives said on Wednesday its profit margins would plummet for several years due to the cost of improving privacy safeguards and slowing usage in its top advertising markets. The news wiped over $120 billion off the company’s share price.
At the same time, the company is coming under concerted regulatory scrutiny in Britain, the United States and the European Union.