Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage.

Rose Prince

2018-04-07 09:36:00 Sat ET

Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage in response to the Cambridge Analytica data debacle and user privacy breach of trust. His long congressional delivery before U.S. Senate seems wooden and stiff and sticks closely to his talking points without any major mistakes. It is clear from the outset that many of the senators are quite tech-illiterate, and the 33-year-old CEO has to explain some basic features of his social network platform. These basic features include Facebook advertisements, business fanpages, target audience segments, active user data distributions, privacy rules, and service terms and conditions etc. Zuckerberg reiterates his apologies for Russian interference in the November 2016 U.S. presidential election, Cambridge Analytica data debacle, and government regulation of social media firms such as Facebook and Twitter.

His answers to some of the tougher questions are less satisfactory, but Zuck never attempts to push back to fill the silence. For instance, a senator asks Zuck whether he would identify Twitter as its primary competitor. Zuck deflects the question to focus on the current size of Facebook as an online social community in comparison to a few platform orchestrators such as Apple, Amazon, Google, and Microsoft etc. The Cambridge Analytica data debacle affects 85+ million Facebook users, and many stock analysts and market commentators discuss the post-Cambridge crisis for Facebook.

Facebook faces fewer active users per month, and the average costs of Facebook ads inevitably surge as the target audience segments become less accurate. As active usage and social engagement both decline over time, Facebook has to deal with low sales revenue and bottomline because some business pages may further constrain their ad budgets on Facebook. The probable increase in Facebook ad expenses can be detrimental to business and non-commercial organizations that continue to maintain their online presence.

New government rules and regulations may entail subjecting Facebook and Twitter to the same media standards for publishers. Alternatively, new government rules and regulations may stipulate that Facebook has to break into smaller subsidiaries in comparison to the antitrust treatment of Microsoft and Google. The current crisis can deter Facebook from tapping into the uncharted territory of both e-commerce and entertainment industries.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

The global cloud expands what can be made digitally viable from electric vehicles (EV) and virtual reality (VR) headsets to artificial intelligence (AI) and the metaverse.

Chanel Holden

2025-04-30 08:27:00 Wednesday ET

The global cloud expands what can be made digitally viable from electric vehicles (EV) and virtual reality (VR) headsets to artificial intelligence (AI) and the metaverse.

The multiple layers of the world cloud Internet help expand what can be made digitally viable from electric vehicles (EV) and virtual reality (VR) headsets

+See More

CNBC reports the Top 5 features of Apple's iPhone X.

Peter Prince

2017-09-13 10:35:00 Wednesday ET

CNBC reports the Top 5 features of Apple's iPhone X.

CNBC reports the Top 5 features of Apple's iPhone X. This new product release can be the rising tide that lifts all boats in Apple's upstream value

+See More

Warren Buffett shares his key insights into life, success, money, and interpersonal communication.

Rose Prince

2018-09-09 13:42:00 Sunday ET

Warren Buffett shares his key insights into life, success, money, and interpersonal communication.

Warren Buffett shares his key insights into life, success, money, and interpersonal communication. Institutional money managers and retail investors ca

+See More

Capital structure choices for private firms

James Campbell

2022-09-15 11:38:00 Thursday ET

Capital structure choices for private firms

Capital structure choices for private firms The Kauffman Firm Survey (KFS) database provides comprehensive panel data on 5,000+ American private firms fr

+See More

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009.

Jonah Whanau

2023-08-14 09:25:00 Monday ET

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009.

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009. Peter Isard (2005) &nbs

+See More

Agile lean enterprises strive to design radical business models to remain competitive in the face of nimble startups and megatrends.

Joseph Corr

2020-10-13 08:27:00 Tuesday ET

Agile lean enterprises strive to design radical business models to remain competitive in the face of nimble startups and megatrends.

Agile lean enterprises strive to design radical business models to remain competitive in the face of nimble startups and megatrends. Carsten Linz, Gunter

+See More