Goodbye Cambridge Analytica, hello Emerdata?

Cambridge Analytica, the company at the epicentre of the ongoing data scandal, in which the non-consensual use of tens of millions of Facebook users’ data was used to target voters in elections such as the US presidential race, Brexit Referendum and almost definitely, probably not the Scottish Independence vote, is no more.

Sort of.

On Tuesday May 2, the company announced it was closing down and going into liquidation in both the UK and US. A statement on the company’s website said:

“Earlier today, SCL Elections Ltd., as well as certain of its and Cambridge Analytica LLC’s U.K. affiliates (collectively, the “Company” or “Cambridge Analytica”) filed applications to commence insolvency proceedings in the U.K.  The Company is immediately ceasing all operations and the boards have applied to appoint insolvency practitioners Crowe Clark Whitehill LLP to act as the independent administrator for Cambridge Analytica.

“Additionally, parallel bankruptcy proceedings will soon be commenced on behalf of Cambridge Analytica LLC and certain of the Company’s U.S. affiliates in the United States Bankruptcy Court for the Southern District of New York.”

The statement went on to defend the company’s totally above board and in-no-way-dodgy behaviour, highlighting how unfair and bogus the whole situation is:

“Over the past several months, Cambridge Analytica has been the subject of numerous unfounded accusations and, despite the Company’s efforts to correct the record, has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas

Having made it clear that it’s all the media’s fault, the statement goes on to point out that: “noted Queen’s Counsel Julian Malins was retained to conduct an independent investigation into the allegations regarding the Company’s political activities. Mr. Malins report, which the Company posted on its website today, concluded that the allegations were not ‘borne out by the facts.'”

So with the media having driven away “virtually all of the company’s customers and suppliers”, Cambridge Analytica has been left with no option but to shut everything down.

Investigation Ongoing

The closure of the company is not going to stop or impede the ongoing investigation into the company by the Information Commissioners Office.

The BBC reports the ICO investigation will still “pursue individuals and directors”. Information Commissioner Elizabeth Denholm said: “We will also monitor closely any successor companies using our powers to audit and inspect, to ensure the public is safeguarded.”

Damian Collins MP, chair of the Commons select committee for Digital, Culture, Media and Sport (DCMS) tweeted: “Cambridge Analytica and [parent company] SCL Group cannot be allowed to delete their data history by closing. The investigations into their work are vital.”

Cambridge Analytica and SCL group cannot be allowed to delete their data history by closing. The investigations into their work are vital

— Damian Collins (@DamianCollins) May 2, 2018

He told the BBC: “We’ve got to make sure this isn’t an attempt to run and hide, that these companies are not closing down to try to avoid them being rigorously investigated over the allegations that are being made against them.”

Mary Creagh, Labour MP for Wakefield, tweeted: “Outrageous. Insolvency used to cover up illegality”.

Outrageous. Insolvency used to cover up illegality. https://t.co/f5dboXH9DT

— Mary Creagh (@MaryCreaghMP) May 2, 2018

A New Hope

Happily, the closure of Cambridge Analytica may be more theoretical than final. Several of the key people behind the company are involved in a new company by the name of Emerdata.

According to Companies House, a company called Emerdata Limited, is headquartered at the same offices as SCL Elections and describes itself as a “data processing, hosting and related activities” business.

Dr Alexander Taylor, acting CEO of Cambridge Analytica has been a director of Emerdata since March 28 2018. Jennifer and Rebekah Mercer, daughters of American billionaire Robert Mercer, the main financier of CA, are also directors.

Interestingly, Alexander Nix, the former CEO of Cambridge Analytica, who was caught on camera by an undercover Channel 4 news reporter making a number of ethically questionable claims, was appointed as a director of Emerdata in January 2018. He was the removed as a director on March 28, a week after his suspension as CA CEO.

While Cambridge Analytica may no longer be with us, it’s reassuring to know that the key people will still be able to bring their experience, expertise and wholly ethical approach to data processing to the market under an exciting new brand.