Friday, May 4th 2018

Cambridge Analytica Files for Bankruptcy, or The Permanency of the Status-Quo

So, here's the thing: everyone that has some sort of window to the world around them has been made aware of the Facebook data scandal that's connected to Cambridge Analytica. Rivers of ink have already poured from journalists' metaphorical fountain pens. However, let's be honest: what real impact has this had on peoples' minds and overall level of comfort with debatable practices and data maintenance or access? What real impact is this having in the grand scheme of things, period?

Facebook exited its 1Q 2018 with record-setting numbers, for one. It just goes to show the entrenched fortress that Facebook has become, the efficiency of its advertising machine, the gargantuan state of dependency and the strength of network effects, of traction, as she put it - everyone (well, not this editor) has one, and thus no-one wants to be left out. Even things as simple as how easy it is to login and register for different services by connecting a Facebook account leads people to stay - and thus the status quo is maintained. The $11.97 billion in revenue with $1.69 EPS that Facebook achieved in its Q1 report, alongside the increase in 48M daily active users should give everyone pause. Is this becoming a case of being too big to fail? What would be required for such a scenario to manifest itself? What sort of betrayal of customers' trust?
However bad will has been levied at Facebook, the reduced stock price and lower earnings per user have been faced as - and effectively are - no more than small bumps on the road. Mr. Zuckerberg has even announced some steps that a cynical person might see as smoke and mirrors to carry users' attention away from the current issues: the new Facebook dating features. These, which could bring Facebook the added weight of a Tinder-like feature, will be a true test for user confidence on the system... Or so it's being hailed. I, for one, have no doubts that it's a long planned feature, that has just found the perfect timing to be announced and eventually implemented, sucking in users even more than it already has. The consequences? To be diluted in new features and a perceived dependency of Facebook's network effects - not unlike what was seen in Mr. Zuckerberg's hearing. He did bring a suit, though.
Which brings me to the firestarter of this small editorial: the situation with Cambridge Analytica. The company has recently filed for bankruptcy, but really, we all know how this works even before it's spelled out: a company like that, which was so successful until the lid was blown, just doesn't go under the water of its own will. No - it morphs; its management moves on to greener, newer pastures, moving along their connections, resources, market and client knowledge, and set up shop somewhere else, looking to continue their ways. It's true: Cambridge Analytica is dead. One face of it, at least. The other has emerged as Emerdata, a new company that has been set up in the last few months by Cambridge Analytica's top executives. When your name is tainted and lawsuits loom, you can always just declare yourself dead and get a new identity. Saves so much trouble, doesn't it?
According to The New York times, Emerdata has been populated by Cambridge Analytica's (and parent company SCL) biggest investors, and brought in "talent" from their skeletons. According to the NYT's sources, re-branding Cambridge Analytica was the plan, with Nigel Oakes, an executive and partner of SCL Group, having publicly described Emerdata as "a way of rolling up SCL Group and Cambridge Analytica into one company". Alexander Nix, a former CEO of Cambridge Analytica (who was caught on tape talking about bribing and blackmailing politicians, and who resigned a few weeks ago alongside other SCL Group executives), has also joined Emerdata. So much for shaking the status-quo. So, long live Cambridge Analytica?
The European Union's GDPR (General Data Protection Regulation) that enters into effect as early as May 28th is a definite step in the right direction towards enforcing responsible business practices and data collection - and storage - from companies. If they fail to abide to the transaparency that's required by the Regulation - or fail to admit the "right to be fogotten" or furnishing consumers their own data - companies can be fined up to 4% of annual global revenue (or up to €20 million, whichever limit is hit first).

And as much as it will likely become a spearhead for similar regulations across the world - old Facebook themselves have pledged to extend GDPR's requirements and directives globally, though "not exactly" - the fact remains that user choice is the ultimate protest. Drying the income well by making a conscious effort to stay informed and think through the data disclosure consent forms that pop up every so often in a new app update or some such is the best way to remain critical and alert, and now allowing oneself to become mere numbers in a datasheet.
But maybe that ship has sailed. Maybe the solution is trying and creating a stronger network effect of choosing not to partake in shady business practices and data collection scandals - that would likely be the best way to make companies change. People are more than consumers, and consumers should be more than numbers.
Sources: TechCrunch, CNN, New York Times, The Verge, The Guardian, EU GDPR
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23 Comments on Cambridge Analytica Files for Bankruptcy, or The Permanency of the Status-Quo

#1
Unregistered
Great article!
I take issue with a lot of it but it was presented quite nicely.
#2
PowerPC
The new EU laws are ridiculously strict. A lot of smaller businesses will not be able to comply to all of them will have to be shut down. The laws are in fact so strict that only a few people wanted them in the first place. They managed to pull them through just because at the time it happened the whole thing with Snowden was big in the news and they had to do "something". Then they just went with whatever strict laws they could find. This is how politics works, folks.
Posted on Reply
#3
_JP_
I think it is specially worrying that Facebook is at a position in which it can just profile you even if you don't have an account.
The extension of this is that GDPR effectively allows Facebook to keep your data once you tap "yes, I agree" on the new "user-fiendly terms and conditions", it will just not share it in an undisclosed manner.
The dating part is hilarious, Tinder nullified the fear some people had to make the 1st contact, besides all else. Facebook's approach seems to me that will just fine-thread relationship attempts between users and non-users.
Posted on Reply
#4
claes
Q1 Financials happened in Q1, ie before the Congressional Hearing...
Posted on Reply
#5
Raevenlord
News Editor
claesQ1 Financials happened in Q1, ie before the Congressional Hearing...
Indeed. Did you see something that related the erroneously in the article?
Posted on Reply
#6
claes
RaevenlordIndeed. Did you see something that related the erroneously in the article?
Yes, it seems tenuous to draw a correlation between first quarter financials and public opinion when public opinion will can a) be more accurately determined by other data (a, b, c) and b) Q2, where FB's financials are more likely to have been impacted by the fallout of the Cambridge Analytica debacle, hasn't happened yet :)
Posted on Reply
#7
Caring1
Those millions of users will include countless dead and inactive accounts that users CANNOT delete.
Posted on Reply
#8
Easy Rhino
Linux Advocate
This is what happens when you people do not read the terms of service.
Posted on Reply
#9
CrAsHnBuRnXp
Easy RhinoThis is what happens when you people do not read the terms of service.
Then they should put a TL;DR at the start of them.
Posted on Reply
#10
Easy Rhino
Linux Advocate
CrAsHnBuRnXpThen they should put a TL;DR at the start of them.
:toast:
Posted on Reply
#11
Easo
I just hope Mr. Zuckerberg can deal with the mental stress.
Think what you want, hate/love Facebook and scream/don't care about privacy concerns, but I would not want to be in his position.
Posted on Reply
#12
Unregistered
The point in time in modern world history where things started to go wrong that brought us here was when Yahoo decided to use user collected data to reinforce the users point of view in order to make targeted advertising more effective.
I don't know how you limit advertising without censoring free will...but I think we can agree manipulation is off limits...then someone argues it's not manipulation its expression and bleh
#13
CrAsHnBuRnXp
EasoI just hope Mr. Zuckerberg can deal with the mental stress.
Think what you want, hate/love Facebook and scream/don't care about privacy concerns, but I would not want to be in his position.
He made BILLIONS that week when he was in congress despite the negative press. If he wanted to he could just say "fuck it" and close up facebook and walk away. He's already set for life and he doesnt even need to invest any money.
Posted on Reply
#14
Easo
CrAsHnBuRnXpHe made BILLIONS that week when he was in congress despite the negative press. If he wanted to he could just say "fuck it" and close up facebook and walk away. He's already set for life and he doesnt even need to invest any money.
You missed my point. Also, it's not like it is that easy. How many would drop the work of their lives?
Posted on Reply
#16
DeathtoGnomes
PowerPCThe new EU laws are ridiculously strict. A lot of smaller businesses will not be able to comply to all of them will have to be shut down. The laws are in fact so strict that only a few people wanted them in the first place. They managed to pull them through just because at the time it happened the whole thing with Snowden was big in the news and they had to do "something". Then they just went with whatever strict laws they could find. This is how politics works, folks.
great propaganda, even named dropped Snowden! Those few "smaller businesses" that are not happy and will likely go out of business are prolly smaller versions of Cambridge Analytica and disregard consumer privacy as a hindrance. ya know, sometimes, very rarely, politics gets something right.

Try not pissing off the politicians, things will be ignoredslide much smoother.:rolleyes:
Posted on Reply
#17
Vayra86
PowerPCThe new EU laws are ridiculously strict. A lot of smaller businesses will not be able to comply to all of them will have to be shut down. The laws are in fact so strict that only a few people wanted them in the first place. They managed to pull them through just because at the time it happened the whole thing with Snowden was big in the news and they had to do "something". Then they just went with whatever strict laws they could find. This is how politics works, folks.
Honestly the GDPR is going to be a shining example of how we should be thinking about data and how it should be handled in a broad sense. Will it cause some companies problems? Hell yes and it should. If some companies seize to exist because of it, FINE. Let them go. We don't need thousands of data crawlers, the benefit to society is below zero.

Small businesses actually don't have as much of a problem as big ones, because smaller business can exercise control more readily, their process has less actors to deal with, etc.

The beauty of GDPR is that even though it is an EU legislation, the strictness of it and the penalties on breaking it are rather well defined and if a company readies the process and infrastructure as GDPR-compliant then why not just do it for the rest of the world as well. The risk of accidentally missing something is high and you've already explored 'how to do it' and even implemented it, so its easy to apply it elsewhere. This is the power of the internet, now used by the opposing side (you say politics, I say important legislation that was LONG overdue and the recent outrage surrounding data was the push it needed) and I really like what I'm seeing.

Its stuff like this that makes me happy to be an EU citizen, it showcases why we need to be in it, and how it can change the world for the better. It won't always be perfect but its a big step in the right direction.
Posted on Reply
#18
PowerPC
DeathtoGnomesgreat propaganda, even named dropped Snowden! Those few "smaller businesses" that are not happy and will likely go out of business are prolly smaller versions of Cambridge Analytica and disregard consumer privacy as a hindrance. ya know, sometimes, very rarely, politics gets something right.

Try not pissing off the politicians, things will be ignoredslide much smoother.:rolleyes:
It's you who is doing the propaganda. Firms like Cambridge Analytica were around long ago and when Obama had a "partnership" with facebook to collect voter data nobody blinked an eye. It was normal, like day to day business. But when they saw Trump profited from something like this, all hell breaks lose.

It's not wise to close yourself off from data analytics like that. It's apparently only a massive problem to gain that kind of insight when the "other side" in politics is profiting and you're offended... Liberal outrage at its finest.
Posted on Reply
#19
DeathtoGnomes
PowerPCIt's you who is doing the propaganda. Firms like Cambridge Analytica were around long ago and when Obama had a "partnership" with facebook to collect voter data nobody blinked an eye. It was normal, like day to day business. But when they saw Trump profited from something like this, all hell breaks lose.

It's not wise to close yourself off from data analytics like that. It's apparently only a massive problem to gain that kind of insight when the "other side" in politics is profiting and you're offended... Liberal outrage at its finest.
pure LOL.

CA was started in 2013. maybe you should check facts before posting speculation and this thread degrades into political BS.
Posted on Reply
#20
PowerPC
DeathtoGnomespure LOL.

CA was started in 2013. maybe you should check facts before posting speculation and this thread degrades into political BS.
Where did I mention when CA was started? Strawman much?

Maybe read this article and educate yourself: www.investors.com/politics/editorials/facebook-data-scandal-trump-election-obama-2012/
We were told then about how the campaign "won the race for voter data," and how it "connected with young voters." His data analytics gurus were treated as heroes.

This is not to say that Facebook doesn't deserve criticism. Clearly, its data-protection policies have been slipshod.

But the recent fury exposes a massive double standard on the part of those now raising hell.

When Obama was exploiting Facebook users to help win re-election, it was an act of political genius. When Trump attempted something similar, with unclear results, it's a travesty of democracy and further evidence that somehow he stole the election.
Posted on Reply
#21
INSTG8R
Vanguard Beta Tester
Pretty sure it served its purpose and going under is of zero consequence. It’s mission was accomplished.
Posted on Reply
#22
DeathtoGnomes
PowerPCWhere did I mention when CA was started? Strawman much?

Maybe read this article and educate yourself: www.investors.com/politics/editorials/facebook-data-scandal-trump-election-obama-2012/
I dont read political opinion, its totally useless and mostly made up facts, i.e. CNN and NBC news.
PowerPCFirms like Cambridge Analytica were around long ago and when Obama had a "partnership" with facebook to collect voter data
"long ago? 2013 is "long ago"? After the 2012 elections ... Why would Obama need voter data after the fact?

just proves my point that anyone will make up facts to push "little white lies" in their opinion as the truth.
Posted on Reply
#23
PowerPC
DeathtoGnomes"long ago? 2013 is "long ago"? After the 2012 elections ... Why would Obama need voter data after the fact?

just proves my point that anyone will make up facts to push "little white lies" in their opinion as the truth.
Who is saying anything about 2013 other than you? The article says Obama used massive amounts of facebook data (much more than Trump) up to his 2012 election... BEFORE Cambridge Analytica there were a lot of similar firms, you know. It didn't all start with CA. Turn your brain on. It only became a bad thing once the opposition (Trump) was using data analytics and liberals fell into a tantrum.

Do you understand how you are being lied to and manipulated to think this is bad right now, when in all honesty it is just someone using data to create a report and gain some insight? 99% of campaigns use data like this from other firms like CA. In what world do you suddenly live in???
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