Summary:
- Facebook violated its own terms of service by not protecting customer data from developers.
- This scandal will drag out through government investigations, regulatory moves, lawsuits, and the exposure of further details about Facebook’s failure to protect user data.
- The outlook is not entirely negative. FB still has long-term earnings potential, and there may be opportunities to buy it cheaper.
In his questioning of Facebook (FB) CEO Mark Zuckerberg, Senator John Kennedy said that “there are some impurities in the Facebook punchbowl.” More bluntly, he continued, “your user agreement sucks.” Kennedy’s questioning deteriorated from there, as he did not get specific enough about the user agreement and showed a lack of understanding about how Facebook and its 3rd party apps work. However, he was absolutely correct in his starting point about Facebook’s user agreement. It sucks. Continue reading at Seeking Alpha…
Econ4All 