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Data scandal threatens Zuckerberg vision for Facebook
By Rob Lever
Washington (AFP) March 20, 2018

You're the product: Facebook's business model explained
Paris (AFP) March 20, 2018 - Do you prefer organic food? Did you study in Mexico? Do you like red shoes? Such bits of information about Facebook users may seem insignificant in isolation but, once harvested on a grand scale, make the internet giant billions. Here's how:

- 'If you're not paying, you're the product' -

Newbies signing up for Facebook are greeted with the promise that the social network is "free, and always will be".

But if users don't pay, then how does Facebook generate its massive profits, nearly $16 billion last year, up 56 percent from 2016? The answer is: via advertising, which at the last count made up a whopping 98.5 percent of the company's total revenue.

Facebook puts into practice what marketing specialists have long summed up in the slogan: "If you're not paying, you're the product."

The "product", in this case, is all the personal data that users hand over to Facebook every time they react to a post by clicking "like", add an emoji, post something themselves, or launch a search on the site.

- Data, that treasure trove -

This mass of information is invaluable for online advertisers because they can use it to "target" people with messages that are more likely to get their attention because many of their tastes are already known.

This is a big selling point for Facebook, which gives advertisers detailed instructions on how to identify and target their preferred group.

"Find people based on traits such as age, gender, relationship status, education, workplace, job titles and more," is one approach suggested by the company. "Find people based on what they're into, such as hobbies, favourite entertainment and more", is another.

"Two billion people use Facebook every month. With our powerful audience selection tools, you can target the people who are right for your business," Facebook says.

- It's all legal -

Facebook's business model is perfectly legal: The network does not itself market any of the data, but instead sells access to the data to third parties, which often don't read or respect the terms and conditions of use.

This can lead to allegations of data breaches. The Cambridge Analytica firm is accused of misusing data of 50 million Facebook users for Donald Trump's presidential campaign, in violation of Facebook's policies.

Facebook also only uses what users freely divulge about themselves.

"Facebook does not look for anything beyond what you yourself have put on the web, and that's the user's responsibility," said Gaspard Koenig, head of GenerationLibre, a French think tank.

"But it's all done in a way that people can't change those terms of use," he said.

Facebook does allow users to restrict advertisers' access to their personal data in the Settings page of their account. This will not remove all ads, just the ones specifically targeted at them.

First it was "move fast and break things." Then it was "connecting the world" and "building a global community."

Mark Zuckerberg's ambitious vision for Facebook spawned one of the world's most powerful companies, but he now faces a moment of reckoning as it becomes clear the social network has been hijacked and manipulated for very different ends.

Snowballing revelations on the misuse of the Facebook platform to spread disinformation, and to harvest personal data in ways users had never imagined, risks undermining the very business model underpinning the social media giant.

Zuckerberg took an idea hatched in his Harvard dormitory and created a network connecting more than two billion people, crushing competing social networks while imagining new ways to connect friends to each other -- and for marketers to reach users.

The rise of social media fuelled a wave of optimism about empowering ordinary people, notably following the Arab Spring uprisings starting in 2010.

"I had the feeling in 2011 that digital technologies were inherently democratic and would fuel democratic revolutions around the globe," said Dannagal Young, a University of Delaware professor who studies social media.

Young said these networks did indeed help propel the Arab Spring, as well as social movements like Black Lives Matter or #MeToo -- but that the public had failed to grasp their darker side.

"People use these platforms and do not understand the economic model," Young said.

"They don't understand what is being commodified, as is everything they do and everything they share."

- Eliminating gatekeepers -

While social networks appear to empower individuals by doing away with "gatekeepers" -- such as the traditional mass media, or political authorities -- the selling of user data can have the opposite effect.

"If the business model is predicated on selling user data, it can seem as democratic as you want but it's serving a surveillance function that undermines democratic values," Young said.

Facebook's reputation has been tarnished ever since 2016, following disclosures of Russian-led efforts to influence the US election -- notably by spreading "fake news" and other forms of disinformation on social media.

But things got markedly worse following weekend revelations that data on 50 million users was culled by a British-based political firm working on Donald Trump's presidential campaign, prompting calls for investigations on both sides of the Atlantic.

Zuckerberg, who began touring the United States after the presidential election, sparking speculation he might run for top office, last year offered his vision of a "global community" as more people become disillusioned with troubled political institutions.

"The world feels anxious and divided, and Facebook has a lot of work to do," the 33-year-old wrote.

But first of all, Zuckerberg will need to focus on the more immediate mission he set himself earlier this year: to "fix" his embattled social network.

- 'Polluted by bad actors' -

Roger Kay, a technology analyst and consultant for Endpoint Technologies Associates, noted that Facebook is just one of many online firms that make use of detailed digital records on its users' activities, which can rarely be expunged.

"Facebook adds to this, but it's not the cause of the problem," Kay said. "The problem is your long-term digital footprint."

Young, of the University of Delaware, voiced optimism that users can regain better control over their Facebook data -- as more people learn about online privacy and how to determine what is shared about them.

"We as users have a lot more control than we think," she said.

"If enough users go in and change their settings Facebook will be forced to respond. I do think there is a fix but it requires a whole lot of learning."

Then comes the issue of disinformation -- which Facebook has been under mounting pressure to combat.

Emily Vraga, a George Mason University professor of communication, said Facebook has taken positive steps in ferreting out false information in recent months.

"But I would like to see even more of that," she said.

One way, she said, would be making Facebook's algorithm available.

"I do think the public should be more aware" of how the network operates, she said.

For Young, both Facebook and Zuckerberg appear to have assumed that "when you crowdsource things the truth will come out" -- a belief that appears naive in light of the "fake news" phenomenon.

"It could be that 98 percent of people on Facebook do it in good faith," she said, but "it doesn't take a lot to undermine that system."

Kay also voiced doubt over Facebook's ultimate ability to eliminate all malicious content without examining every item on its platform -- an impossible task.

"They can't curate something with two billion users, there aren't enough editors out there," he said. "And if they held up the content, the users would go away."

He also notes that Facebook is not the first digital firm to be manipulated in such a way.

"Social networks have come and gone," Kay said. "They are first seen as an amazing way to connect people and then they become polluted by bad actors."


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Some Americans 'constantly' on internet, others remain offline
Washington (AFP) March 14, 2018
More than one in four American adults say they are online "almost constantly," but a small percentage still don't use the internet at all, a survey showed on Wednesday. The Pew Research Center report said growth of smartphones and other mobile devices has made it easier to be always connected. As a result, the percentage of US adults saying they are almost constantly online rose to 26 percent from 21 percent in a 2015 survey. Overall, the researchers found 77 percent of Americans go online o ... read more

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