The US Federal Trade Commission will investigate Facebook over how private data on millions of users was given to Cambridge Analytica.
The social network has been criticised for letting the analysis firm scoop up data on 50 million users.
The information is believed to have been used to help Donald Trump’s 2016 campaign for US president.
The FTC said its probe would determine whether Facebook had “failed” to protect users’ privacy.
News of the FTC probe, which former FTC officials say could trigger fines in the trillions of dollars sent shares down 6.5% in afternoon trading in New York before they recovered slightly.
SOURCE: BBC NEWS