User:Soberm

The power of Facebook

The rise of “the Enemy of the State” to global power

Facebook, which emerged as thefacebook.com, was launched by a group of Harvard students in 2004. The group was led by Mark Zuckerberg, who chose to call himself “the enemy of the state” in his first profile description on the platform. The initial goal of the online service was to create a space for Harvard students to interact with each other through personal profiles. The platform gained increasing interest and first, spread to other Ivy League universities, and then turned into a widely used service among educational institutions at national level in the US. In 2005 Facebook became available to international educational institutions, while in 2006 significant changes to the creation of profiles were introduced. These changes enabled a wider audience to join the platform regardless of their occupation and nationality. Until 2007 the creation of Facebook profiles was limited to just individuals, while the new features launched in 2007 made it possible for anyone to create a page, which in turn led to the rise of usage of the platform by stakeholders from all societal sectors – public, private, civil society .

Since its inception Facebook developed a diverse number of functions and services and what started out as a platform to connect students in the US became a big multinational corporation expanding its influence into new areas of the economy and life. While it rose to become one of the most powerful social media platforms globally, its popularity also became the reason for an increasing interest of state actors to define limits of Facebook's power.

Facebook: A threat to the state or a victim of the states

Bans on Facebook

With the rising reach of Facebook globally its political impact started becoming noticeable as also shown by the examples previously. While democratic countries have also censored content on Facebook, most of the action taken against the company was driven by autocratic states in their efforts against civil society unrest and oppositional forces. Multiple countries have placed temporary and some even permanent bans on the social media platform.

The first country to ban Facebook was Iran in the lead-up to its presidential elections in 2009. The social media platform was blocked in the effort of the Iranian government to suppress the voices of the opposition, as the platform connected the leading oppositional candidate to critical youth .

Soon after the ban was introduced in Iran, China banned Facebook. The ban followed after deadly civil clashes in the province of Xinjiang which were attributed to mobilization online . In 2000 a document of the Chinese State Council outlining categories that should be censored was released, where one of the points relates to the internet information services which promote hatred and racism among people . Therefore, the activity of Chinese users on Facebook groups that facilitated the mobilization for the Xinjiang riots is in violation of that principle. The violence in the province of Xinjiang became the reason for completely banning Facebook in China .

While citizens of North Korea have very limited access to the Internet in general, Facebook got banned in the country in 2016. Due to the already restricted usage of the platform in North Korea the main reason to ban the platform is to prevent real-time publications by foreigners visiting the country

Most recently, in the context of the invasion of Ukraine, Russia put a ban on Facebook and labeled Meta an ‘extremist’ company, whereby Facebook was seen as a platform promoting interests against Russia .

While the aforementioned bans on Facebook are driven by governmental efforts against oppositional forces, they can be seen as action taken based on the values held by the leaders of these states. In the same sense, the European Union has taken recent action against Facebook and other big companies, in an attempt to defend European values such as privacy, democracy and fair competition. The approach of the European Union is regulating such platforms and trying to achieve a change in behavior instead of banning them.

The EU's data protection concerns

The first big move against practices of Facebook and other big companies was the release of the General Data Protection Regulation (GDPR). The GDPR was negotiated in the context of the Snowden revelations, which in 2013 exposed the large-scale surveillance campaign of the US based on data of multinational corporations such as Facebook. This event significantly shifted the attention to large companies and resulted in their demonization and subsequently in the adoption of a very strict GDPR, as the salience of data protection increased among Europeans and European decision-makers respectively .

While the Snowden revelations exposed a number of companies, Facebook became the center of European attention in the two legal cases driven by the Austrian activist Max Schrems II. Schrems filed data protection-related complaints against Facebook, which resulted in the Schrems I and Schrems II rulings of the European Court of Justice. These rulings invalidated existing agreements for data transfers between the US and the EU, which significantly complicates the work of American companies relying on such transfers. These processes became the reason for the famous statement of Zuckerberg that Facebook could leave Europe, as no agreement between the EU and the US on data transfers might make Facebook’s operation in Europe unprofitable.

“With size comes responsibility” – European Commissioner Margrethe Vestager

At the end of 2020 the Digital Services Act Package was released by the European Commission and included two pieces of proposals for regulations – the Digital Services Act (DSA) and the Digital Markets Act (DMA), both of which have significant implications for platforms like Facebook.

The DSA establishes a number of rights of users online, as well as directly regulates different types of content distributed by digital service providers. The DSA also implies that the European Commission should receive access to the data of such service providers in order to track compliance . The DMA, on the other hand, regulates competition and aims to ensure fairness among digital service providers by preventing unfair practices employed by big platforms acting as gatekeepers. Both regulations have been agreed on by the responsible EU institutions and will mean significant costs in case of non-compliance. However, it is worth noting that it will take another almost 2 years for the DSA to become applicable across the Union, while for the DMA it would be 6 months after it officially comes into force .

Despite enormous lobbying efforts, the EU is taking decisive action against companies like Facebook in the pursuit of protection of the Union’s values. Whether these newly introduced measures will have any effect on big platforms like Facebook remains to be seen as such companies possess the resources to cover even big fines, while the European regulatory apparatus is slow and might remain toothless in the fast-developing world of Big Tech.

Facebook's cryptocurrency Libra

This page is primarily concerned with the dangers of social media data collection. An interesting case with that is the new cryptocurrency “Libra” from Facebook. Most crypto currencies encrypt transactions, promoting anonymity and giving people back their privacy. But Facebook is notoriously known for harvesting user data. That does not seem to fit with cryptocurrencies. In this chapter we’re looking into the ideas of “Libra” and also look at the opposite of data protection: What are the dangers of anonymity on the Internet? In 2019, Facebook planned to create a cryptocurrency named Libra . The plan was for the cryptocurrency to drive e-commerce ventures on its platform. Although Facebook is otherwise very well known for collecting and analyzing user data en masse, the company seems to be going in the opposite direction with its cryptocurrency. On June 18th, 2019, Mark Zuckerberg shared a long Facebook post about their crypto plans. He wrote “Libra's mission is to create a simple global financial infrastructure that empowers billions of people around the world. It's powered by blockchain technology, and the plan is to launch it in 2020” . He claims that the Libra Association is built on blockchain technology and is decentralized – meaning it is run by many different organizations instead of just one. “This is an important part of our vision for a privacy-focused social platform - where you can interact in all the ways you'd want privately, from messaging to secure payments”. Facebook Libra aims to become the first mainstream cryptocurrency and allows all kinds of payments. The potential use cases for the cryptocurrency are peer-to-peer funds transfer, online payments, brick-and-mortar payments, and in-game/in-app purchases. “If all goes well, you’ll even be able to apply for a loan or credit” .

The problems with Libra

However, the Libra currency never really started. The project immediately ran into fierce opposition from policymakers globally, who worried it could erode their control over the money system, enable crime and harm users’ privacy” . The Diem Association — which Facebook founded in 2019 to build a future payment network — was selling its technology to a California bank that works with bitcoin and blockchain companies By that, “Facebook’s jump into crypto is over before it really began”.

Cryptocurrencies and anonymity

Many analysts believe that Zuckerberg wants to create a U.S. version of the Chinese app WeChat, which combines social networking, messaging, and payments in one app Facebook wants the same all-in-one app, only on a global scale. This will allow Facebook to display ads on WhatsApp and Instagram and let users pay directly for products and services through the app. If Facebook manages to institute Libra, it’ll be able to gather even more data on its users’ shopping preferences . The US Senate is also concerned about the Facebook currency. Back in 2019 they sent Mark Zuckerberg a letter and asked him seven questions about privacy and data with the Libra currency . They haven’t heard back from him since then and until they get an answer to their questions, they want to postpone the launch of Libra. So far, many people worry that Facebook is not that serious about data protection, especially when one thinks about Facebook’s past actions. Recently cited Deyan G. from techjury.net (2022) wrote about the Libra project and quotes William Shakespeare “Don’t trust the person who has broken faith once.” Facebook is “not the paragon of trustworthiness”. The Cambridge Analytica Scandal from 2018 is still fresh in mind for a lot of users. Back then, Facebook harvested user data from about one million users for advertising during elections . Fears about a lack of data protection at Libra are therefore not unjustified.

Downsides of anonymity

In general, cryptocurrencies are known to offer more privacy than traditional currencies. But this privacy also has some downsides. The high anonymity favors illicit activities like money laundering, tax evasion, transfer of money to terror organizations, and demands for ransom by criminals . For instance, the WannaCry malware, which infected many computers back in 2017, required victims to pay a ransom in bitcoins (ibid.). To prevent crimes like this it is necessary to increase the regulatory measures. The ability to transact anonymously is one of the most important attributes of digital currencies. “Nevertheless, the need to combat crime supersedes people’s desire to maintain anonymity in their online transactions. Therefore, cryptocurrency may face stringent regulations in the future” (ibid.). Although more people want to protect their data and governments are imposing further laws on data protection, online anonymity also leads to a perilous online world boosting crime and fake news, we are left with many and simultaneously no solution to one of the most critical challenges of the information society.