Facebook shares drop as data privacy fallout spreads

As their first move, social media companies like Facebook could stop allowing their ad services to be used as freewheeling experimental laboratories for examining their users

WASHINGTON: Facebook Inc shares sank on Dec 19 as concerns about its ability to safeguard user data sparked a government lawsuit, criticism in the US Congress and a New York Times report on how it had shared data with other companies. 

The stock of the world's largest social media company fell 7.25%, its biggest intraday drop since July, taking losses for the year to about 24%. Investors are concerned about snowballing legal and regulatory efforts over data use polices that have upset many customers and could carry significant penalties and costs.