Is Facebook compliant?

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Being the world’s biggest social networking site, Facebook is in command. It leads in social communication and has over a billion number of users. But, recently Facebook became the prime target of government regulators. How and why did this happen? Where will these drag Facebook? Let’s peep inside the story.

To be at odds with government regulators is not recommended, notably when you are one of the most recognised companies of the world. Facebook is an engaging social site and its founder Mark Zuckerberg has now made his entry among the top 10 richest people on earth in 2016. With such attribution and acclaim, odds do follow. No gain without pain, as they say. Investors and traders within binary options watch this movement closely, given the rise and fall of Facebook’s shares. This huge social site is a famous traded stock in binary options and it’s share price matters to those who follow its trend to trade. So leave what you are doing and see how this can be helpful to you traders!

Being at daggers drawn with Brazil and Germany? Not a good idea!

Facebook faces a bitter situation with government regulators in Brazil and Germany and some other countries as well, over minor issues. This is a confusing situation whereby it is hard to say who is at daggers drawn with whom. But government regulators in Brazil and Germany are pretty serious about this matter.

What is it all about

Now that I have touched your curiosity chord, let’s just evaluate the cause. Have you ever wondered how is all your data processed by Facebook? This includes your name, your surname, your place of work, your date of birth, your place of birth, your hobbies, your dislikes, your pictures and many many many more data. What if your personal data was misused? Sounds like a dangerous scenario, but recently countries like Brazil and Germany were getting highly concerned by what Facebook can control and to what extent are we safe.

The 1.6 billion members’ social network now needs to confront regulators of Brazil and Germany. Privacy issues have become a matter of concern for Germany which has started applying robust antitrust rules to overcome the same issues. Competition law and online privacy need to be redefined in Europe and an ongoing assessment will be instilled to gauge whether Facebook Inc. is abusing its dominance as a social network to exert control on personal information.

Earlier, due to complaints received by consumer groups who criticized Facebook over a number of problems, the giant social networking company was summoned to bring in some changes. Facebook failed to make the necessary modifications and was fined $108,000. According to German law and politicians, Facebook Inc. was asked to alter some of its privacy terms which were deemed as unlawful. Facebook introduced privacy terms for German users but failure to do so in time caused real troubles.

However, threats of these gigantic economies do imply a danger: Danger for Facebook. Facebook has not been in fire just with these two giant economies but also with several other countries, something which has played a significant role in putting Facebook’s goodwill at risk. Binary options traders should watch it’s trend. Remember when I talked about innovation for binary traders? Well, with innovation comes also confusion and disadvantages. Yes, the world is moving fast and the need for communication has risen to the core. That is also not hidden from anyone, but Facebook might have gotten itself into real troubles by trying to assemble the world together on one platform. Getting social is not a crime, but the means used to get social is not seen as appropriate by all countries. Cultural barriers are yet to be overcome, while privacy is even another sensitive issue.

Take a look at the legal havoc generated by Facebook

India: Free basics issue

“Connectivity can’t just be a privilege for some of the rich and powerful. It needs to be something that everyone shares and an opportunity for everyone”

Source: Mark Zuckerberg 2014: First meeting of internet.org

Facebook brought this service in order to bring internet to the attention of everyone in India. It was earlier known as the internet.org which aims at providing free internet access to India’s poor people. However, as all the services provided through this medium were powered by Facebook and only a limited amount of information could be available for use, indian regulators did not agree to this venture. However, I feel it was really not professional on behalf of a few indians to decide for a lot of indians out there who could have received something as they already had nothing. But regulations remain regulations, no one can contest them. Later on, the free basics service went to be closed and many indians who could have reaped from it, remained in the darkness that they dwelled in. Government intervened to add that it was partial to decide whether to let Telecom have different pricing for different kind of contents.

Europe: (Belgium / France / Austria)

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Acting as a Watchdog for Europe, Belgium dragged Facebook into court over privacy breaches and user tracking (issues). In 2015, Facebook came under the limelight, answerable to a lot of legal issues. The Belgian privacy law took Facebook to the court stating that the giant in social media trampled over Belgian and European privacy law. Belgian privacy watchdog presented a detailed list of Facebook’s actions that shows Facebook violating privacy issues and that it also kept a track of non-users and logged out users for advertising purposes. Users’ private life is being heavily jeopardized by Facebook and Belgium thinks that this is against their will and shows no respect towards users. Belgium privacy watchdog cannot charge fines to Facebook as such but a lawsuit was best deemed in respect of privacy issues in this case.

Egypt:

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Many countries fear oppression of their population if Facebook starts to show the real image of these same countries. How would people react to such propositions and what could the government do to stop such growing popularity of Facebook. Various types of media has let out some real political issues and thereafter, the Egyptian government and its supporters have been digging out ways to control its ascent or completely ban it. The Egyptian government fears that Facebook could initiate a revolution.

Food for thought

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If traders take a look at Facebook’s trading schema of last year, they would see that the giant social network had a superb rally but by the end of the year, its share price was a lot affected. Due to the growing uncertainty around Facebook and its regulators, its shares dropped and rose, to follow the same pattern throughout the year. In Binary Options, traders have to look for such opportunities. I cannot come and tell you, trade Facebook today because it is in demand. What if it was no more in demand tomorrow? What if it phases out but resurfaces after a few weeks. These types of information are what you need to look for. Nothing is gained without some pain. If you rise today, there will be a fall tomorrow somewhere. There is a time for everything to fade out but is refashioned and presented to you in another way. Your trust and your confidence and what you know about a particular company is what will determine your next gain.

Binary options traders, should always carry some knowledge about the company shares they want to trade on. Tomorrow another giant social network may crop up and you wouldn’t know about it until your friend tells you it is the latest trend of putting your pictures and finding your friends. But what you really need to know in Binary Options is that, how credible is the company. Is it credible enough, then go for a CALL option! And if it’s not credible, then go for a PUT option. Facebook still remains under heavy surveillance and will never stop encountering those regulators. So keep a watch on these trends and go for a wider range of worthwhile trades.

Warren Tancredi By: Warren Tancredi
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