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Also, they're probably hoping that people will have forgotten about the EU's disdain for Facebook's entire profit model[1], which could wreak havoc on their via
by law 15y ago
Also, they're probably hoping that people will have forgotten about the EU's disdain for Facebook's entire profit model[1], which could wreak havoc on their viability in the market. Facebook really needs to step up its game by developing some technology or business method equally as disruptive as they were to the social networking industry in 2004. I would imagine this could take the form of quasi-gamification, where the information people disclose and allow Facebook to use is treated as de facto currency for how they can interact with the site.
In that regard, users would receive the service in exchange for something of value to Facebook--information. Their current Statement of Rights and Responsibilities requires users to grant Facebook a "non-exclusive, transferable, sub-licensable, royalty-free, worldwide license to use any IP content that you post on or in connection with Facebook."[2] To me, this is unconscionable, since the service you receive remains constant, while what you 'pay' (the consideration) varies with your level of usage. While one could reasonably argue that the quality of service you receive increases with respect to your level of interaction (i.e., you can't chat with friends until you connect with friends), there's a certain level of unforeseeability inherent in Facebook's intended use at the time you disclose that information (such as making a friend request, wall post, liking a page, etc.)
There are some even more troubling issues, as well. Interacting with third-party services via the application platform (by installing apps) gives those services access to your information. Once they have it, you're bound by their terms of use and privacy policies. I'd love to see the exhaustion rule/first-sale doctrine[3] discussed vis-a-vis data privacy, since I'm unsure whether it would apply to "data." We saw this discussed tangentially by the web sites attempting to create marketplaces to sell used MP3s[4]--the first-sale doctrine allows you to resell used books, used CDs, etc., but can it allow service providers to sell its copy of "used" data? What about the putative buyers of "used" data--are they bound by Facebook's Special Provisions Applicable to Developers/Operators of Applications and Websites? All of these are questions with answers that could have an extremely disruptive impact on Facebook's entire profit model.
[1] http://www.telegraph.co.uk/technology/facebook/8917836/Facebook-faces-a-crackdown-on-selling-users-secrets-to-advertisers.html http://www.telegraph.co.uk/technology/facebook/8917836/Faceb...
[2] https://www.facebook.com/terms.php https://www.facebook.com/terms.php
[3] http://en.wikipedia.org/wiki/First-sale_doctrine http://en.wikipedia.org/wiki/First-sale_doctrine
[4] http://www.techdirt.com/articles/20110218/12432213167/yet-another-company-says-it-can-help-you-sell-used-mp3s.shtml http://www.techdirt.com/articles/20110218/12432213167/yet-an...