The last few weeks of 2018 are proving to be one of the worsts for Facebook Inc. as the company gets plagued with controversies and market falls.
In a report from MarketWatch, Facebook went down 7.3 percent during last week’s trading, ending with its biggest single-day fall since July this year. The result was seemingly caused by the social media giant’s latest controversy involving a significant number of user information that was provided to FB’s partner tech companies.
The New York Times reported the data breach as a “more intrusive access to users’ personal data than it has disclosed.” Apparently, the social network leader gave tech companies like Amazon, Netflix and Spotify, access to its database of users’ names and even contact information via the user’s friends. Early this year, FB even allowed Yahoo to view a stream of users’ posts—this, despite Facebook saying that it has stopped this kind of sharing.
When the privacy act controversy began
This year has been exceptionally difficult for Facebook as it got thrown for various privacy scandals stemming from March this year. Political consulting firm Cambridge Analytica was first to release some truth bombs when it revealed that Facebook has improperly used user data which resulted in the formation of tools that aided the campaign of U.S. President Donald Trump back in 2016.
Facebook admitted to the breach of users’ trust, prompting the social media company to carry out stricter privacy guidelines, with CEO Mark Zuckerberg himself needing to assure the U.S. Congress that users have “complete control” over data shared on the FB platform. This controversy created a tidal wave of security measures among other companies, with platforms reviewing their own guidelines and asking new sign-offs from users.
In the MarketWatch report, it revealed that Facebook Inc. has allowed streaming giant, Netflix and music streaming brand Spotify to access private messages for both data gathering and promotional services.
“Facebook’s partners don’t get to ignore people’s privacy settings, and it’s wrong to suggest that they do,” a Facebook spokesperson said in a statement. From Spotify, a spokeswoman also said that in the past, users could indeed share music with friends and add text that was visible to Spotify. However, this feature has been disabled.
The spokeswoman also denied that Spotify was able to access the private messages of Facebook users. The same denial was also issued by Netflix. In the New York Times article, however, the documents which became the basis of the controversy, along with interviews of around 50 former employees of the social media giant, showed that it indeed let certain companies access to data despite set protection settings. The controversy questioned whether FB did not follow or broke a 2011 agreement with the Federal Trade Commission which specifically barred it from sharing any user data without clear permission.
All in all, the data breach benefited more than 150 Facebook affiliates and most are tech companies serving retail and entertainment services.
Last week’s stock figure is Facebook’s second-biggest fall for 2018. Last July, it suffered a 19 percent decline, issuing a disappointing projection for the rest of the year.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [1xBet Affiliate Program]
Wanna discover one weird sports betting niche with plenty of low-hanging fruit just waiting for you to exploit? Then read...
Which Are the Most Important Fintech News from February 2024
Monite secured $6 million in a top-up financing round, bringing its total seed-stage funding to $16 million. The funds will...
Spanish Pharma Listed Companies Reduce Their Profits by 37% in 2023
Of the Spanish pharma listed companies, PharmaMar has suffered the most significant drop in profits due to generic drug competition...
How Much Does Europe Invest in Sustainability
Europe is moving rapidly towards a renewal of the regulatory framework for sustainability , with the obligation for almost 50,000...
The German Medical Cannabis Market Could Be Worth Three Billion
Currently, the German medical cannabis market serves a relatively small part of the population, with approximately 28,000 patients, or less...
Business1 week ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Buffalo Partners]
Cannabis2 weeks ago
What EMCDDA Changes to the Cannabis Law in the European Union Mean for the Industry
Business5 days ago
11 SEO Trends You Need to Know About in 2024
Cannabis1 week ago
Czech Republic Bans HHC: New Regulations Change the Market