Why Facebook's Huawei Data Deal Has Lawmakers Mad: QuickTake

Facebook Inc. is under fire this week for yet another instance in which the personal data of users was shared outside of the social network in ways that most users were not aware. At issue are partnerships with more than 60 device-makers who had permission to make Facebook-branded apps. One of those phone-makers was Huawei Technologies Co., which the U.S. has warned could be a security risk, given its close ties to the Chinese government. Facebook says data never ended up on Huawei’s servers, and that it regularly checked to make sure. Huawei says the same. Still, Facebook has lost trust with lawmakers, who are calling for tighter scrutiny of the company’s data practices and may demand further testimony on the issue.

Years ago, in order to get the Facebook experience onto phones, tablets and other devices that didn’t have app stores, the company let device-makers from Apple Inc. to Huawei build Facebook apps and tools on its behalf. That required special contracts so the hardware-makers could take control over the projects, which would later be approved by Facebook. Facebook says this was a common practice by tech companies at the time. The contracts persisted because a lot of these older devices are still in use around the world, though Facebook is working to end them.