Facebook profits increase despite privacy controversies

Facebook profits increase despite privacy controversies
|  Privacy groups call for social media giant to be broken up as Facebook profits increase

Despite privacy controversies plus a series of privacy scandals, the negative news seems to have done little to dissuade users from logging into Facebook. Moreover, Facebook profits increase, with the social media giant recording eye-watering profits for the last quarter of 2018.

Facebook racked up $6.9bn (£5.3bn) in profits, a significant increase on the $4.3bn (£3.3bn) it amassed during the same period in 2017. Revenue rose by 30% to $16.6bn (£12.9bn), The Guardian reports. The social media service also has more people logging in every day, culminating in a 9% growth in user activity, the newspaper says.

Facebook estimates that around two billion users log in to at least one of its apps, which include Messenger, Instagram and WhatsApp, every day. Facebook’s performance has come as a surprise to many, given the number of controversies it has been embroiled in since the Cambridge Analytica scandal last year.

MEPs call to suspend Privacy Shield framework

Earlier this week, TechCrunch discovered that Facebook has been paying $20 in gift vouchers to users as young as 13 to harvest their data. There were also a series of data breaches in 2018, including the leaked photographs of up to 6.8 million users.

However, these incidents do not seem to have swayed Facebook’s backers. Speaking to Sky News, Debra Aho Williamson, an analyst from research firm eMarketer, said the news proves that “advertisers are clearly still very reliant on Facebook”. She added that the social media firm had “demonstrated that the challenges of 2018 have not had a lasting impact on its ability to increase both revenues and usage”.

Facebook’s profits and revenue figures would suggest that last year’s scandals have done little to impact the company’s ability to make money, but some believe the company is facing an uphill battle. The firm’s reports show that growth in the US and Europe, two of its “largest and most profitable markets”, has “pretty much stopped” in recent months, according to Wired. Most of the company’s growth has come from Asia, where users generate a third of the amount of revenue as those in the US and Canada.

Facebook Hack could result in GDPR penalty

The tech site also claims that Facebook’s next quarterly report may be “less encouraging” than its figures for the final period of 2018. This is because the firm plans to invest heavily in Facebook Watch, its online video service, and Marketplace, which could drive yearly expenses up by as much as 50%.

Meanwhile… Privacy groups have published a letter calling for Facebook to be broken up and fined billions over privacy concerns, in the wake of recent scandals.

The move came from American privacy groups including the Electronic Privacy Information Centre, and was delivered to America’s Federal Trade Commmission. Nine groups urged Facebook to be fined over privacy concerns, and for Facebook’s companies (WhatsApp, Instagram and Facebook) to be reestablished as independent, The Register reports.

 

Sources and credits: Yahoo News, The Week

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