The Story
Facebook’s image has changed.
The Cambridge Analytica scandal showed the world how Facebook’s lax privacy measures allowed a data analytics company to exploit users’ data to predict and shape behaviour.
The aftermath of the 2016 US election showed how Facebook could be used by other states to influence elections and spread fake news.
Facebook’s role in the spread of anti-Rohingya propaganda in Myanmar and anti-Muslim violence in Sri Lanka, showed how the platform could be used to incite hatred and violence across the globe.
The events over the past two years have proved that Facebook is no longer just a US social media company; it now plays a role in the supply of the world’s information. This newfound position is forcing regulators to reconsider how laws are used to regulate the digital world.
Impact on Businesses and Law firms
Facebook’s privacy scandals have turned global regulators against the company. Gibson Dunn recently advised Facebook against its £500,000 fine from the Information Commissioner’s Office, the highest fine under the UK’s pre-GDPR data protection law. Across the Atlantic, Facebook’s practices led to a record $5bn fine from the Federal Trade Commission, while the upcoming California Consumer Privacy Act demonstrates how some US states are turning away from the US’s traditionally light-touch approach to data regulation.
In the EU, a recent decision by the European Court of Justice set a new precedent for how and where speech should be regulated on the internet. The EU’s highest court found that judges across the EU could order Facebook to remove defamatory or illegal posts, not just in their own country, but across the world. This aligns with a growing view that Facebook is not just a neutral platform, but a publisher, and therefore accountable for particular content posted on its site.
Most recently, the recent scandals have damaged Facebook’s attempts at disrupting the world of finance. Fears over how its proposed cryptocurrency could be used to facilitate money laundering and terrorist financiers, as well as undermine the strength of currencies, has led to regulatory pushback. France, Germany and Italy are seeking to block Libra in Europe, while today (Wednesday, 23 October 2019) Facebook’s CEO will be attempt to regain favour with US lawmakers at a Congressional hearing.
By Jaysen Sutton
