Facebook may also face more repercussions than other tech giants under scrutiny, like Alphabet Inc. and Amazon.com Inc., as its revenue model is uniquely ad-driven, Beacon said.
Facebook choosing “privacy above safety” may be a “trade-off not everyone will agree with,” MKM’s Rob Sanderson wrote in a note. He flagged Facebook’s moves toward inter-operability across messaging services and full encryption, and added that losing Chris Cox, whom he called Facebook’s second-most influential executive after Mark Zuckerberg, has been a catalyst for re-examining potential consequences.
Full encryption lets Facebook ensure technical privacy protection for all users, “including those that want to harm and exploit others,” which may become increasingly controversial, Sanderson said. Giving people better tools for finding and communicating with one another may boost problematic activity, while hurting Facebook’s ability to monitor “hate speech and other abuses.” And Facebook might be unable to gather as much user data, which has been “a huge enabler of better services and better ads.”
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