SPECIAL REPORT: Mark Zuckerberg leveraged Facebook user data to fight rivals and help friends, leaked documents show.
in terms of access to data. In addition to Pikinis, the casualties included Lulu, an app that let women rate the men they dated; an identity fraud-detecting app called Beehive ID; and Swedish breast cancer awareness app Rosa Bandet .
Despite this, Six4Three’s access to data, specifically access to a user’s friends’ photos, was cut off in April 2015 as part of sweeping changes to Facebook’s platform announced a year earlier, which affected as many as 40,000 apps. Six4Three shut down the app soon afterward.“Our case is about Zuckerberg’s decision to weaponize the reliance of companies on his purportedly neutral platform and to weaponize the private and sensitive data of billions of people,” said Six4Three founder Ted Kramer.
The company was in a desperate position, documents show, with users sharing fewer photos and posts on the platform as they spent more time on their cellphones. An internal Facebook presentation looking back at this period used the phrase “terminal decline” to describe the fall in engagement. Discussions continued through October, when Zuckerberg explained to close friend Sam Lessin the importance of controlling third-party apps’ ability to access Facebook’s data and reach people’s friends on the platform. Without that leverage, “I don’t think we have any way to get developers to pay us at all,” Zuckerberg wrote in an email to Lessin.
"I just can’t think of any instances where that data has leaked from developer to developer and caused a real issue for us.” Zuckerberg didn’t know it at the time, but a privacy bug affecting an unnamed third-party app would create precisely this kind of strategic risk the following year, according to a panicked chatlog between Michael Vernal, who was director of engineering, and other senior employees.
He noted that though Facebook could charge developers to access user data, the company stood to benefit more from requiring developers to compensate Facebook in kind — with their own data — and by pushing those developers to pay for advertising on Facebook’s platform.“The purpose of the platform is to tie the universe of all the social apps together so we can enable a lot more sharing and still remain the central social hub,” Zuckerberg said in the email.
“Remind me, why did we allow them to do this? Do we receive any cut of purchases?” Chris Daniels, then Facebook’s director of business development, asked in an email. “If so, we'd like to restrict them at the same time to group this into one press cycle," he wrote in an email.Deal negotiations created confusion among partners who had grown accustomed to unfettered access to Facebook user data.
Bryan Klimt: “So we are literally going to group apps into buckets based on how scared we are of them and give them different APIs? ... So the message is, ‘if you’re going to compete with us at all, make sure you don’t integrate with us at all’? I’m just dumbfounded.”David Poll: “More than complicated, it’s sort of unethical.”Facebook declined to comment on the employee exchanges.
Facebook told NBC News that it was “completely reasonable” for someone on the communications team to discuss the best way to get the message out on changes to the platform.Facebook CEO Mark Zuckerberg delivers the keynote address at the F8 developer conference in San Francisco in 2014.
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