For someone infamous for his social awkwardness, Mark Zuckerberg acquitted himself relatively "well" in his two days of testimony before US Congressional committees.
Certainly investors thought so...
After sliding -14.5% over February and March, shares in Facebook rallied 5.3% over two sessions on Tuesday and Wednesday.
The good news for investors is that the business model is likely to prove more resilient.
Greater regulation of internet giants like Facebook and Google is inevitable
John Kennedy warned Zuckerberg on Tuesday that: “There are going to be a whole bunch of bills introduced to regulate Facebook.”
At the very least, Zuckerberg can console himself that his ritual humiliation this week at the hands of Congress was mild compared with that dealt out by the Chinese authorities to Zhang Yiming, founder of news aggregator Toutiao.
Tech investors can console themselves too
Some observers have compared Zuckerberg’s appearance in Washington to turning points like the Supreme Court’s 1992 ruling that big tobacco could be held liable for smokers’ ill health.
Heightened regulation is likely to require clearer user agreements, explicit consent for specific actions
Inevitably, compliance will carry considerable costs.
But while tighter regulation typically squeezes margins, it also tends to entrench incumbents
Big companies with deep pockets like Facebook are better able than start-ups to absorb compliance costs.
New entrants will find it that much harder to obtain consent for services that users have yet to try out.
But such wholesale defection looks improbable.
In a 2017 Pew Research Center survey, 51% of US respondents said they had little confidence in social networks’ data security.
Someone who has spent the last 10 years uploading his data to Google or living out her life on Facebook will be reluctant to go to all the effort of switching to a new platform.
Sen. John Kennedy "grills" Zuckerberg about Facebook Privacy
And if users don’t switch, neither will advertisers
In 2017, global internet advertising spending surpassed television ad spending for the first time, and the market continues to grow strongly—23% year-on-year in the US in the first half of last year.
Facebook and Google retain a commanding duopoly over the market (outside China), and there is little sign of their hold weakening.
Yes, some advertisers have questioned the effectiveness of targeted advertising over social media.
In short, the market is evolving and becoming maturer.
Tighter regulation is inevitable. But the effect may well be to entrench the dominant players, rather than to erode their positions.
As Steemians, you know what to do... #DeleteFacebook !
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There is a lot of money involved. Honestly if the facebook platform fail Mark and company have amassed so much money that I think they can figure out another way to earn a ton.
I am steemit believer and realize that to be on steemit one is willing to be open due to the inherent nature of blockchain saving all posts and steemit posts open to all to see.
I think Facebook wont be the same in the future. People wont visit it like they did in the past. But they might still use it to promote their businesses and have their online shops.
Many things changed rapidity this year and more changes will occur in the near future. It is really difficult to predict now :)
I feel lazy to open Facebook lately. I contact all my friends on whats aap and made many friends on Steemit. Didn't know this would happen, but it happened and we are all here !
Thanks for your comment and I behave the same way.
Facebook has invested in a very smart way in Instagram and WhatsApp which have increasing use and better long term prospects. Facebook is going down, just don't forget that WhatSapp and Instagram are owned by Zuchini too ;)
Oh i didnt know about that, but thank you for the information :) I rarely use Instagram, but use whats aap because the most people are having it.
But as I said you never know what happens in the future. like Steemit emerged from nothing and started conquering, another App can come out and make Whats aap a memory from the past :)
The problem of any technology is that laws and regulation can't keep up with it. Social Networks exist for years, but can you point a country where there is a set of laws regualting all aspects of social network exists? The same is with cryptocurrency, we are not going to see any proper laws this year or the next one.
Then a problem like this with facebook happens and government tries to act. From one point of view there is no proper laws, from the other hand people want some actions to be taken. And government tries to act and to punish someone outside itself. it never takes responsibility for not regulating something properly in the first place.
Yup but governments are coming and they will be very aggressive trocarts GAFAS.
No-regulation is coming to an end.
I don't think anything much will happen to Facebook, not that many people are really aware of what happened, and in the sale of personal data to outside companies like Cambridge Analytical, the typical reaction is that nobody is swayed by email political advertising. So I don't see this as a big blow to Facebook as long as they keep their members they are OK, how many people have deleted their accounts? Not as many as you would hope.
Apparently 9% are saying they did or will do in the next weeks. We’ll see if they really do :).
Facebook has well over a billion accounts, I wonder if over one hundred million have actually said they will delete their accounts.
Facebook destroy the our time in future, and destroy the young peoples.
First i am delete my facebook account, then i am join the steemit.
Facebook is a plateform that waste the our important time, bit in other way it communicate with our friends.
But we can communicate with friends with the help of another platefprm.
steemit is one of the best plateform on internet, that are used sharing knowledge with friends, along with earning.
i like steemit, but i cannot dislike facebook, because it waste my time.
i dont get it...you say facebook wasted your important time on communicate with your friend but now you are you still can waste your time to communicate in another platform...so what related to facebook wasting your time? you're still using another platform to waste your time...haha
Everyone should aware of facebook. It wastes your time without any benefit.
You are correct, wholesale dropping of FB isn't happening due to this fiasco, but we'd argue LONG TERM Facebook has some serious problems ahead due to mis-management. This mis-management of customers and product has just manifested itself this month, but expect more to come whilst one of their competitors has no such problems...
https://steemit.com/money/@harpooninvestor/new-york-magazine-just-don-t-understand-a-snap-vs-facebook-story
This post has received a 5.79 % upvote from @booster thanks to: @vlemon.
I left Facebook a while ago (my information didn't lol), now I am only on Steemit and Twitter
At this moment I remember that message that I circulated a few years ago on WhatsApp throughout Venezuela - I do not know to what extent in Latin America - that since September, someone did not give permission to Facebook or the entities associated with it to use images, information, publications, both past and future.
I wonder who will be doing who started rolling this ball that "predicted" what is happening now with the Cambridge Analytical scandal.
It makes ppl disappointed to Fb,may be it is time to switch our fb acct to Steemit!
Con esta plataforma de stemit seguramente en el futuro facebook quedara a la historia. Aquí te premian poco cosas que haces de gratis en facebook, y si es de esa forma mucha gente migrara aqui y todos ganaremos. El futuro feliz