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Technology Stocks : Investing in Exponential Growth
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From: Paul H. Christiansen3/21/2018 4:24:58 PM
   of 1084
 
What Can Facebook Do Now?



American and European lawmakers and regulators are ratcheting up pressure on Facebook to take action to better safeguard user data. The company changed its policies two years ago to prevent outsiders like Cambridge Analytica from easily gathering data on millions of Facebook users. But Facebook could take action in other areas—although there would be a cost.

But if Facebook does nothing, Congress may impose regulations on how the company uses data, crimping its ads business as it tried to comply. Here are some possible options for Facebook—and why even these moves will be difficult.

At the center of the Cambridge Analytica storm was the quiz app that the firm used to collect data from users—and their friends. Facebook stopped apps from collecting friend data in 2015, though apparently didn’t do much to ensure that previously downloaded data had been deleted. But the company still allows third party apps to connect with a person’s Facebook profile. Many popular apps like Uber are part of Facebook Login, which makes it easier for people to log into those apps.

Facebook could cut off access for these outside apps, or at least make closed-access the default setting on each person’s profile. That way, users would have to consciously open up access to outside apps.

This would be a big step. The Facebook login—and the data sharing that goes along with it—is key to how the modern web functions. Closing off access would hurt lots of smaller apps, which would have to persuade people to spend time inputting their personal information when opening an account.

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