Facebook shares fall as tech firm admits data sharing with Chinese tech companie

Facebook shares closed lower as it confirmed it has a number of data sharing agreements in place with Chinese tech firms.

Facebook shares fall as tech firm admits data sharing with Chinese tech companie

Facebook shares closed lower in the US Tuesday, as the social media firm admitted it has data sharing agreements with some Chinese tech companies. The admission came as Facebook added that all the data remained on the users’ handsets and not company servers.

Facebook shares ended the US Tuesday trading session 0.18% in the red at $192.94. The stock is also lower in after-hours activity.

Facebook data sharing agreements

The confirmation of data sharing agreements with Chinese tech businesses, follows a report in the New York Times stating that Facebook has given data access to at least 60 different tech device makers.

Facebook responded by saying this was not a breach of its privacy policy and that it had done nothing wrong by making these agreements.

It then added further detail by saying it has data sharing agreements in place with Huawei, Lenovo, OPPO and TCL – something that other US tech firms have, too.

Francisco Varela, vice-president of mobile partnerships for Facebook, said the data sharing agreements with those firms – and others - were “controlled from the get go" and that "we approved the Facebook experiences these companies built”.

Varela added: “Given the interest from Congress, we wanted to make clear that all the information from these integrations with Huawei was stored on the device, not on Huawei's servers.”

However, despite the attempted reassurances from the US social media giant, US Senate Intelligence Committee member, Senator Mark Warner, said news of Facebook’s data sharing agreement with Huawei, raised “legitimate concerns”.

Huawei has been noted as a security threat to the US by its intelligence services.

Facebook building 13th data centre

In other Facebook news, CEO Mark Zuckerberg shared details of the tech giant’s latest data centre plans. The social media platform will build its 13th data centre, which will be located in Eagle Mountain, Utah.

“All our new data centers are powered with 100% clean and renewable energy,” Zuckerberg said. “This new technology will allow us to build data centers in places we couldn't before -- helping us support more jobs and our growing community around the world.”

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