"Last month we decided that we should pause these discussions so can focus on other important work", a Facebook spokesperson told CNBC.
Meanwhile chief operating officer Sheryl Sandberg earlier on Friday said the company should have conducted an audit after learning that a political consultancy improperly accessed user data almost three years ago.
Facebook said this week that up to 87 million users - more than the 50 million users estimated by Wylie when he spoke to the media outlets that reported on this issue in mid-March - may have had their information accessed by Cambridge Analytica, which obtained the data from Cambridge University researcher Kogan.
The deadline for compliance with the EU's General Data Protection Regulation (GDPR) is just over a month away (25 May 2018) and the United Kingdom plans to introduce GDPR-aligned data protection legislation around the same time.
Facebook was in talks with organisations including Stanford Medical School about the data-sharing project.
Sandberg also touched on another contentious issue for Facebook: the role it will play in the upcoming elections and in the US political system as a whole.
"We approached this research as we would any other scientific, medical, or clinical research - ensuring that the research protocol would be consistent with HIPAA regulations, the HHS Office of Human Research Protections regulations, and relevant Institutional Review Board decisions", Valentine said in an emailed statement.
TechCrunch was able to confirm multiple reports of this happening.
Facebook's acknowledgement that most of its 2.2 billion members have probably had their personal data scraped by "malicious actors" is the latest example of the social network's failure to protect its users' data.
The policy changes come ahead of strict EU privacy rules that will kick in starting May 25 and apply to any company using or processing data on European citizens.
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers. Challenged with the evidence, Facebook confirmed that it had deleted some messages from the inboxes of the recipients, without disclosing it was doing so.
It also means that some of his conversations are lost, which is a bit of a bugger if they turn out to be needed for evidence after all the other cock-ups which Zuck promised to "fix" this year before we knew what we know now. It seemed to have been done without explicit consent, though Facebook says it only collected such data from Android users who specifically allowed it to do so - for instance, by agreeing to permissions when installing Facebook.
It continued: "This was a breach of trust, and I'm sorry we didn't do more at the time".
"Safety and security is never done, it's an arms race", she said.
Facebook does not sell or giveaway user data, but "our service depends on your data", Sandberg told NBC.