Facebook Faces Increasing Regulatory Barriers Around the World (Sep 18, 2017)
The New York Times has a long piece which dives deeply into the growing regulatory barriers facing Facebook in many of the markets where it operates, including the markets where it has the most headroom in terms of user growth. China is a particular focus, and the story there should be familiar based on earlier items I’ve linked to (see all previous posts tagged with both Facebook and China). But the piece also talks about Europe, whose strong privacy laws have already caused Facebook problems in individual countries, and the fact that Europe and not the US is often the model other countries around the world look to in regulating telecoms and technology markets. I saw this very clearly when I was a regulation analyst early in my career and the US was always the outlier, while the rest of the world tended to adopt European-style regulation in various areas a few years after Europe did so. That could put severe limits on Facebook’s normal business model of collating all the data created by users across its various apps and using it to target advertising. In other countries, it’s having to work uncomfortably closely with unpleasant regimes which would limit their citizens’ freedom of expression. Perhaps we shouldn’t wonder that Facebook seems to have pivoted from emphasizing user growth to focusing on community building – that user growth is potentially going to become considerably tougher, and the community building focus makes a great platform for arguing that Facebook is a force for good in countries where it’s allowed to operate unfettered.
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