Facebook as a digital platform.

in LeoFinance3 months ago

For this article I will take a closer look at Facebook as a digital platform. While at first glance it might seem like a social media platform rather than a marketplace that is only the top layer of their eco-system. Facebook traffic information and use social media as a vehicle to attain it.

Blockchain for Business.


Ref: Pixabay

On one side you have the users who provide all of the content, data and information that Facebook can sell to the highest bidder. This information is then used to create more targeted advertising which is used to buy ad space back from Facebook and be directed towards at those users.

The users might feel that it is a free space that they are operating on but in fact they are bartering away their data for the experience of using this platform. It is an area that will be highly legislated going forward as a corporation like Facebook holds enough information to influence large scale issues across the world.

At the moment they are in the news for censoring Australian access to information and taking on government legislation.

Facebook blocks Australian users from viewing or sharing news. It comes in response to a proposed law which would make tech giants pay for news content on their platforms.

Ref: BBC.com

This is not even the first time as Facebook are already being sued by a group of developers and investors form the “HIVE blockchain”, who are suing on the basis of Facebook manipulating the crypto markets in 2018 by banning cryptocurrency advertising and manipulating the information available to it’s users.

The class action will seek damages for worldwide losses of crypto industry members and investors. The announcements of the crypto ad ban by the respondents dropped crypto markets by hundreds of billions of dollars. Crypto exchange volumes also dropped by 60-90%.

Ref: Bitcoin.com

A lot of these advertisements would have been for platforms that would attempt to take on Facebook for its users across social media, marketplaces, data retention and other uses. By blocking their access to the advertising space for sale Facebook maintained their monopolistic advantage over these start up industries.

As a matchmaker, Facebook is perfectly position to sell data to anybody looking to make those matches. They allow a company to be very specific in how they advertise and ensure higher sales. In the beginning Facebook was about growth and connections for it’s users until it reached a tipping point. Now that it is big enough and powerful enough, they are all about the profits.

They have the market power to set the terms and are happy to do so. They control the information and therefore they control the power in any deals which they do to full advantage.

It will be interesting to see how the fight with Australia goes as a government tries to take them on and exert control over their marketplace for information.

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Thank god this crooked greedy tech giant was stoped before they made they're own crypto!
The problem is that people don't get access / are not interested in kind of news. I'm slowly moving away from all FB related platforms, I will use it for business exclusively.

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The question is if this will stop them?
Facebook hold a lot of power over countries and this will be a good test of that. If they decide to uphold the ban and Facebook remove all Australian public services, advertising, information. Who will cave first?

I don't see this as a negative! People just accept 'news' to be gospel as it appears on their Facebook feed. If something makes them go and away and look for, better still research news, this can only be a good thing!

Facebook need reigning in and whilst I'm not a fan of using legislative measures, someone needs to bring them down a peg or two!

I don't like the fact that a government are trying to control what they do as a business and take their profits for other companies that don't deserve it.

I do love to see them put up a fight against Facebook and have a good power struggle over information. Facebook is only a shitfest of forced information any so like you said. If people have to go and find other sources of information and research the truth about certain things even better.

I hope to see facebook fail through public realization of what they are feeding into as more decentralised and public sources of social media come into place. It might take time but they will lose their hold over people as better alternatives appear on web3 and people leave in droves form the Facebook empire.