In its first quarter earnings report yesterday, Facebook revealed that it is putting aside $3 billion (about 6 percent of its cash and marketable securities) in anticipation of an upcoming fine from the Federal Trade Commission regarding privacy violations. The penalty, which could become the highest of its kind against a tech company by U.S. regulators and the biggest privacy-related fine in the FTC’s history, is expected to run from $3 billion to $5 billion. The social media giant posted more than $15 billion in revenue, a 26 percent increase over the year-earlier period. Continue reading Facebook Planning to Face FTC Fine in Excess of $3 Billion

According to sources, the Federal Trade Commission, which is investigating Facebook for mishandling of personal data, is also taking a close look at co-founder/chief executive Mark Zuckerberg and deciding if and to what degree he should be held personally responsible. Should the FTC move in this direction, it would be a major new challenge for the Silicon Valley company and a personal censure of Zuckerberg. At the same time, Facebook just revealed it botched the safeguarding of millions of Instagram passwords. Continue reading FTC Examining Zuckerberg’s Personal Role in Data Lapses

Facebook wants to team with the news industry to create a tab in its app devoted to publishers’ content. In a conversation with Axel Springer SE chief executive Mathias Döpfner, Facebook chief Mark Zuckerberg explained the plan is in its early stages, and that he doesn’t want to build it without input from publishers. He compared the proposed news tab to the Watch tab that aggregates video from publishers, some of which do so exclusively for the platform. He also suggested that Facebook would pay publishers to ensure high-quality content. Continue reading Facebook to Launch a Dedicated News Tab with Publishers

Mark Zuckerberg thinks tech companies, including Facebook, have “immense responsibilities.” Acknowledging the problems related to social media, he stressed that tech companies can’t solve all those problems on their own. Instead, he opined, the government and regulators need to play a stronger role. “By updating the rules for the Internet,” he said, “We can preserve what’s best about it.” He focused on four areas that he said should be regulated: harmful content, election integrity, privacy and data portability. Continue reading Facebook CEO Calls For Increased Government Regulation

Senator Elizabeth Warren (D-Massachusetts) aims to be the Democratic Party’s candidate for the 2020 U.S. presidential election, but she just alienated Silicon Valley when she proposed to break up tech companies that generate more than $25 billion in online revenue. Her rationale is that companies such as Amazon, Facebook and Google have become too big and too powerful, squashing small businesses and innovation, and more focused on their financial well-being than “the broader interests of the American people.” Continue reading Elizabeth Warren Looks to Break Up Major Tech Companies

Mark Zuckerberg, who runs Facebook, Instagram, WhatsApp and Messenger, stated his intent to focus on private and encrypted communications that can be deleted after a certain amount of time. This new goal is opposite the originally stated purpose of Facebook, which was built around public posts in what he said would resemble a digital town square. Zuckerberg said the first step towards this new goal for Facebook would be to integrate Instagram, WhatsApp and Messenger, to enable cross-application messaging. Continue reading Mark Zuckerberg States Intent to Upend Facebook’s Basics

Germany’s Federal Cartel Office, the country’s competition authority, issued an antitrust argument to restrict Facebook’s data collection. Stating that Facebook currently provides users with a stark choice between allowing the company to collect unlimited data or not using the site, the Federal Cartel Office stated that Facebook must allow users to refuse the company’s bid to collect their data and automatically merge it with data from Instagram, WhatsApp and non-Facebook sites. The decision impacts 32 million German users. Continue reading German Antitrust Ruling Restrains Facebook Data Collection

An investigation reveals that Facebook has been secretly paying users ages 13 to 35 since 2016 to install an iOS or Android “Facebook Research” app that gives the company access to all of their smartphone and Internet activity. The Research app is similar to Facebook’s Onavo Protect app that Apple banned in June and may also be a violation of Apple policy. Legislators on both sides of the aisle were infuriated at the news, decrying the surveillance technology. Facebook’s earlier Onavo app was also criticized as spyware.

Continue reading Facebook Solicited Teens to Download Its Surveillance Tool

Facebook is unveiling new tools to prevent the spread of fake news and misinformation, including making more information available about political ads on its platform. The tools will first debut in India next month and then to the European Union in March. Facebook is also tweaking its moderation, announcing plans for an outside group or board to review its content decisions, giving it authority to reverse internal content decisions. The board will be comprised of 40 members worldwide chosen by Facebook. Continue reading Facebook Unveils Tools to Prevent the Spread of Fake News

Facebook chief exec Mark Zuckerberg reportedly plans to integrate the company’s Instagram, Messenger and WhatsApp messaging apps. According to those familiar with the plan, the three services will continue operating as standalone apps, but their tech infrastructure will be stitched together. For the first time, the messaging networks’ 2.6 billion global users will be able to communicate across platforms. The initiative is expected to be completed by the end of this year or early 2020. It will require teams to significantly reconfigure functionality of all three services and will include new end-to-end encryption. Continue reading Facebook to Integrate Instagram, Messenger and WhatsApp

During CES, Gigaom publisher Byron Reese discussed the ideas in his latest book, “The Fourth Age: Smart Robots, Conscious Computers and the Future of Humanity” with CTA’s Cindy Stevens. Reese’s previous three ages are Language and Fire; Agriculture and Cities; Writing and Wheels. But robotics and conscious computers, said Reese, divide people into two groups. “People like Stephen Hawking see AI as an existential threat,” he said. “Whereas Mark Zuckerberg and others think that’s ridiculous and can’t fathom that point of view.” Continue reading CES: A Look at Robots, Conscious Computers and Humanity

According to its 2017 internal records, Facebook shared users’ personal data with the world’s biggest tech firms, allowing them to circumvent privacy rules. By doing so, Facebook boosted its advertising revenue, partner companies enhanced their products with more features, and Facebook users were able to connect across websites and devices. For example, Facebook allowed Microsoft’s Bing search engine to see names of all its 2.2 billion global users without consent, and let Netflix and Spotify read users’ private messages. Continue reading Facebook Shared Private Data to Advance Its Own Interests

Based on 250 pages of internal Facebook emails and documents from 2012 to 2015 and released by a U.K. parliamentary committee, it’s been revealed that Facebook used its massive cache of data to favor some companies, such as Airbnb and Netflix with “special access,” and punish others by cutting them off. Further, chief executive Mark Zuckerberg and chief operating officer Sheryl Sandberg were closely involved in decisions to “increase sharing back into Facebook” and other moves to primarily benefit the company. Continue reading Internal Emails Reveal the Way Facebook Treated Companies

In a conference call with reporters, Facebook chief executive/chair Mark Zuckerberg defended his company against charges that he and chief operating officer Sheryl Sandberg hid problems regarding Russian interference and other issues. Politicians have discussed opening a federal investigation into possible campaign finance violations and creating competition laws to curb the company, while shareholders have called for Zuckerberg’s ouster and activists have complained to the Federal Trade Commission. Continue reading Facebook Deals with Criticism, Marketers Mull Over Options

Facebook recorded lower Q3 revenue than expected, the result said chief executive Mark Zuckerberg of “an unsteady transition” from News to more popular but less profitable Stories, which allows users to build photo/video montages that disappear after 24 hours. The company relayed that the transition’s early stage will be marked by higher costs, including more investment in 2019, and continued slow growth. Investors took the news in stride, unlike the July earnings report that resulted in a stock price plummet. Continue reading Facebook Growth Slows in Early Stage of its Shift to Video