Bad Week for Facebook, News and Revenge Porn

Bad Week for Facebook, News and Revenge Porn

Bad Week for Facebook, News and Revenge Porn

$FB Nasdaq:FB

Shares in Facebook dropped by more than 4 percent ahead of Friday’s opening bell after the CEO announced changes to the platform’s centerpiece news feed, which he said would hit user engagement in the near term.

The company is planning to change the filter for its news feed to prioritize what friends and family share, while reducing the amount of non-advertising content from publishers and brands. The measure is a part of a wider program aimed at prioritizing “meaningful social interactions” against “relevant content.”

“We feel a responsibility to make sure our services aren’t just fun to use, but also good for people’s wellbeing,” Zuckerberg said in a post on his Facebook page.

The step is seen as a deep concern for publishers, as the feed is a massive source of traffic and revenue. If the pre-market declines in shares hold, Facebook will lose nearly $23 billion from its market capitalization on Friday as a result of the move, Reuters reports.

According to Zuckerberg, the time spent on Facebook will go down, but “will be more valuable.”

Shares in the social networking service have gained 48 percent over the last year, and could grow another 18 percent to $213 per share, according to analysts polled by Bloomberg. The company is set to report earnings on January 31.

According to some analysts, the measure won’t drag Facebook down due to its strong monetization, formed by a monthly active user (MAU) base of more than 2 billion.

“Facebook will continue to grow its massive global installed base in our opinion while importantly monetizing users especially on the Instagram side of the house, which remains the ‘core 1-2 punch’ that underlies our bullish thesis on the name,” said Daniel Ives, head of technology research at GBH Insights, as quoted by CNBC. According to the expert, the company’s stock may grow up to $225.

Facebook Porn

Facebook has paid compensation to a 14-year-old girl after naked revenge porn photographs of her were posted on social media. The case is believed to be the first of its kind.

The social media giant settled the landmark legal action and awarded unspecified damages to the teenager, from Northern Ireland, after she sued it for negligence, breach of the Britain’s Data Protection Act and for misuse of private information.

It is understood the picture had been obtained through blackmail.

Facebook had initially fought to get the case dismissed, arguing it always takes indecent pictures down, once reported. But it eventually agreed to pay the damages, as well as the legal costs incurred by the claimant.

Lawyer Pearse MacDermott, representing the girl, said: “Had these images been put in a newspaper or on the TV there would be serious repercussions and those same repercussions should also apply to whatever platform is used in the social media world.

“The case moves the goal posts in the sense that Facebook always said it was up to the individual user to be responsible, not them. It now puts the onus on the provider to look at how they respond to indecent, abusive and other such images put on their platform,” MacDermott said, according to the Daily Mail.

“Whenever an image is put up that is clearly objectionable they should be able to stop that ever going up again. They should use the technology they have to be a responsible provider and remove the offensive post.”

Facebook bans explicit images and, in the UK, revenge porn can result in a prison sentence of up to two years. The upload of inappropriate or indecent images to the social media platform, however, remains a major issue for Facebook.

It comes as moderators sifted through Facebook’s feed last January and found there were 51,300 potential cases of revenge porn, which the firm defines as attempts to use intimate imagery to shame, humiliate or to gain revenge.

In addition, they found 2,450 possible cases of sextortion – classed as attempts to use the images to extort money or to obtain more pictures.

In light of the findings, Facebook disabled more than 14,000 accounts.

Last month, a former Facebook boss claimed the social network’s “dopamine-driven feedback loops” were “ripping apart the social fabric.’”

Its ex-president, Sean Parker, said: “God only knows what it’s doing to our children’s brains.”

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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