Facebook’s standoff with Australia likely to backfire across the globe

Facebook’s standoff with Australia likely to backfire across the globe

by Pranali Mehta

According to reliable sources, Facebook Inc. is likely to face several regulatory battles in 2021 following its short but turbulent standoff with Australia over its landmark law of paying media outlets for publishing content.

Facebook had responded by cutting off news sharing in Australia, which then reportedly jeopardized vital sources of information, especially about Coronavirus at a crucial time during vaccine rollout.

The abrupt move was not only significantly criticized, but these high stakes apparently compelled the social media giant to compromise with the Australian government. By that time, however, a global regulatory domino effect had already started, with several publishers pressuring European Union to emulate the Australian law, sources claimed.

Apart from this, U.S. legislators have also raised concerns over Facebook’s ad business. In fact, Congress is planning to introduce stricter antitrust measures on multinational tech giants in a bid to control their monopoly powers.

Facebook, on the other hand, had recently courted fresh controversy after its encrypted messaging business WhatsApp updated its privacy policy which would allow its parent company to gather additional user information. This led to several lawsuits, with users flooding to rival messaging platforms Signal and Telegram.

Among its other battles, Facebook is facing a lawsuit from the U.S. Federal Trade Commission over anticompetitive behavior, sources confirmed. An unfavorable ruling could force the company to sell off its highly popular photo and video sharing service Instagram.

Facebook’s business model is also likely to be challenged by Apple Inc. this year, with the iPhone-maker questioning its longstanding model of utilizing user information for target advertising. For those unaware, Apple is planning to change some privacy rules on its smartphones that will require apps to ask users before collecting data and tracking their activity.

Australian law seems to have plagued Facebook’s pace, countries across the world might soon introduce a similar rule. It will be interesting to see how things unfold for Facebook in the foreseeable future amid changing legal dynamics.

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Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...