Huawei faces new challenge due to Facebook data scandal

Huawei phone campaign in China
The U.S. administration is worried about social media network Facebook’s agreement with Huawei, among other China-based smartphone companies, for sharing personal data of its customers.

Huawei is the world’s third largest smartphone company with a strong presence in Europe and the U.S.

Huawei, the largest telecom equipment maker, has already come under the scrutiny of U.S. intelligence agencies on security concerns. The US-based Facebook on Tuesday said that it has data sharing partnerships with Huawei and another three Chinese companies, Reuters reported.

Earlier this year, US president Donald Trump had blocked the acquisition of Qualcomm by Singapore-based Broadcom due to some fear that Broadcom will be supported by Huawei. US feel that Huawei will be collecting information about American citizens through its phones or telecom equipments deployed in America.

Facebook said Huawei, Lenovo, OPPO and TCL were among about 60 companies worldwide that received access to some user data after they signed contracts to re-create Facebook-like experiences for their users.

Members of Congress raised concerns after The New York Times reported on the practice on Sunday, saying that data of users’ friends could have been accessed without their explicit consent. Facebook denied that and said the data access was to allow its users to access account features on mobile devices.

Facebook said it suspended more than half of such partnerships. Facebook would end the Huawei agreement later this week. It is ending the other three partnerships with Chinese firms as well.

Chinese telecommunications companies have come under scrutiny from U.S. intelligence officials who argue they provide an opportunity for foreign espionage and threaten critical U.S. infrastructure, something the Chinese have consistently denied.

Senator Mark Warner, vice chairman of the Intelligence Committee, who asked Facebook if Huawei was among the companies that received user data, said in a statement that the House of Representatives Intelligence Committee had raised concerns about Huawei dating back in 2012.

“The news that Facebook provided privileged access to Facebook’s API to Chinese device makers like Huawei and TCL raises legitimate concerns, and I look forward to learning more about how Facebook ensured that information about their users was not sent to Chinese servers,” Warner said.

Senate Commerce Committee demanded that Facebook CEO Mark Zuckerberg should respond to a report that user data was shared with at least 60 device manufacturers, weeks after the social media company said it would change its practices after a political firm got access to data from millions of users.

In April, the Federal Communications Commission (FCC) proposed new rules that would bar purchases by government programs from companies that it says pose a security threat to U.S. telecoms networks, a move aimed at Huawei and ZTE.

The Pentagon in May ordered retail outlets on U.S. military bases to stop selling Huawei and ZTE phones, citing potential security risks.