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Facebook still makes a lot of money despite a series of scandals

Tuesday, October 26, 2021 12:05 PM (GMT+7)

On October 26, the BBC reported that social networking company Facebook posted better-than-expected earnings for the third quarter of this year despite continuing to face bad news about leaked internal documents. rust.

The social media giant made $9 billion in the three months to September, up from $7.8 billion last year.

However, it was hit by a new privacy update for Apple’s iOS 14 operating system, making it harder for brands to target ads to specific users.

In addition, Facebook has also been embroiled in scandals related to new statements about the company’s unethical behavior from a former employee.

Frances Haugen, a former Facebook employee, leaked internal documents to the press, alleging that Facebook put profits above user safety.

The documents show that Facebook routinely fails to censor incitement, hate speech, and sex-related content outside of the United States.

On October 25, Facebook CEO Mark Zuckerburg told investors: “What we are seeing is a concerted effort to selectively use leaked documents to paint a misrepresentation of our company”.

In the 12 months to September 30, the social media giant said its monthly user base grew 6% to 2.91 billion users.

Facebook still makes a lot of money despite many scandals

However, despite the strong profit, its revenue came in slightly below analyst expectations, amid “turbulence” caused by Apple’s privacy regulations.

Facebook said the privacy update will also have an impact on its digital business in the final quarter of the year, but it is expected to adjust to the change in time.

The company says it will spend about $10 billion on its Virtual Universe division this year — called Facebook Reality Labs — which is tasked with creating virtual and augmented reality hardware, software and content. .

The world’s largest social media network is under scrutiny from global lawmakers and regulators, including from the US Federal Trade Commission, which has filed an antitrust lawsuit alleging anticompetitive behavior. .

The whistleblower documents, first reported by the Wall Street Journal, only add to that pressure.

These include internal research into Instagram’s influence on teen mental health and whether Facebook’s platforms are divisive, in addition to the social media giant’s handling of it. Congress for the riots at the Capitol on January 6.

At a hearing on October 25, Ms Haugen told UK MPs that Facebook was “making hate worse”.

She said Facebook’s safety teams are under-resourced and “Facebook is not willing to accept even a small sacrifice of profits for safety”.

MPs are considering what new regulations will be imposed on major social networks under the planned Online Safety Bill.

Despite the accusations, Facebook shares rose 1.3% in after-hours trading on Oct. The company’s shares are up about 20% so far this year.


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