Facebook Data-Sharing Probe Shows New York Finance Agency’s Flex

A recent New York investigation into Facebook Inc.'s data-sharing practices shows how the state’s financial regulator can flex its powers over technology companies.

The New York State Department of Financial Services investigation was conducted at the request of Gov. Andrew Cuomo, who is pushing for a state law that would set data privacy protections for New Yorkers. The agency announced its findings Thursday and reported that Facebook took few steps to block third-party apps from sending the social media company sensitive user data such as medical and personal information, even though the practice violated its sharing policies.

The DFS probe ...