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Facebook collects data - this insight is as old as Facebook itself. What many don't realize is that their data collecting doesn't stop at the gates of their portal. By means of their own and external sources, Facebook is creating comprehensive user profiles to the point where German, Russian and French authorities have begun to step in. They're focusing on two problem areas: Facebook's enormous market power and the extent of their data collection activities. In other words: once you know enough about billions of people, you'll be able to fix ad prices and likely violate several laws in the process. This even affects non-Facebook members!
Facebook's hunger for data is truly breath-taking. Age, gender, income and place of residence are a given but it doesn't end there. In total, Facebook collects over 100 dates on each user to provide them with tailored ads at any time. What is your marital status? Do you own a house maybe even with a piece of land? If so, how old and how large is it? What about love and offspring? What's your profession and how much do you make? Do you need car parts? What kind of games do you play on your smartphone or PC? How's your credit standing? Any travel plans? TV shows, beauty needs, restaurant visits and loans are equally interesting to them - and a lot more. There's even a dedicated data set for excessive alcohol consumption to identify drinkers.
One could argue that every information was surrendered deliberately the moment users accepted Facebook's EULA. In return for your data, you get a free product. Whether every participant fully read and understood the terms is another matter entirely. Consequently, users are regularly stunned by how on point the ads are. Why am I seeing ads for tens when I just made up my mind about spending my vacation on a campground in France? Oh right, I posted it somewhere with a request for tips. At that moment, many realize for the first time what targeted ads really mean.
Unknown territory is where Facebook ends and other sites continue to feed them your data. WhatsApp and Instagram are likely candidates since they're now owned by Facebook granting them access to an even bigger pool of data. After all, phone numbers, contacts and interests make for a nice addition to create an ever denser network of information. But that's not all. Many apps and Internet sites that appear unrelated to Facebook at first glance still provide them data once they're running / visited. Thanks to intricate interfaces, everything comes together on Facebook's servers slowly filling the final gaps In user profiles.
The German federal cartel office is watching the situation in horror, not only because of data privacy concerns but also because of the enormous market power wielded by the data kraken. Billions of users mean billions of profiles across the globe - with that much clout, fixing prices and setting standards becomes a no-brainer. Naturally, Facebook manager Yvonne Cunnane disagrees. She doesn't see any signs of market dominance and complains about a "distorted picture" being painted by the media. Still, the age-old method of playing down one's significance just won't work for a billion dollar global company even when executives naively (and deliberately) claim that market power and popularity are two separate things. In this market, popularity does equal penetration and penetration means power!
Besides, Facebook's claim they're not in a dominant position falls apart once you include WhatsApp, Instagram and the myriad of external sites that also collect data for them. Yes, there are alternatives like YouTube, Snapchat, Twitter and others but they target a different user base - and are under constant attack from the market leader. And anyone who saw how Facebook copied parts of Snapchat to appeal to their focus group, i.e. youth, and to push the company out of the market will instantly dismiss any such claim. What we have here is a company trying to become the central social and information hub by adding every feature from competing products.
What’s in a shadow profile?
But you're not on Facebook I hear you say? Chances are the platform still keeps a shadow profile of you based on address books that have your address or messages and image captions that include your name. The goal is to map out your social relationships for business use so anyone who has you in their friends list or address book becomes an information portal. What gifts have you recently made? Do you shop together with a friend? Depending on how often you show up in other people's posts, the profile on you may be quite detailed. Not as detailed is if you were a Facebook member but still extensive enough to circumvent your anonymity!
Since self-regulation doesn't seem to work with Facebook, courts are now springing into action. A Belgian court recently ruled that Facebook has to delete any data about non-members or pay a 100 million euro fine. A German court ruled that new users must have the option to register without stating their real names which should make collecting data significantly harder. At the European level, consumer and privacy institutions have announced weighty decisions for 2018. It appears Facebook is facing tough times ahead! "If we fail, users will go elsewhere - history has proven that with other tech companies over the years" said an executive recently in an interview. He likely hit the nail on the head.
Whether you're a Facebook member or not, be honest now: are you as surprised as I was about the level of sophistication the company employs with their data collection activities or do you just don't care how much companies know about you?
In reply to 'governments controlling our lives' Sven, I have to agree with your comment.
Most people have to understand that the internet is a technological super-highway, and similar to other highways the millions of people who use them on a daily basis have to be protected from their, and others' stupidiy,
That is the reason for a book of rules to be adhered to and a licence to use the highways.
There are many who abuse the rules, even their own strict rules as in the case of Facebook, although on that site the unwritten rules of common decency, good manners and respect for others do not even exist in the minds of millions of users.
Very good (and timely) article... When I first heard about Facebook I decided not to join as I thought it would be a time waster, so I never saw the EULA (but would I have read it if I'd joined?). My wife says many of her remarkls to me "go in one ear and out the other". Luckily adverts "go in one eye and out the other". There are a few ads (mainly on TV) that I know about (Famous Grouse around Christmas time (but never bought the product), The Meerkats (though I've no idea what they advertise)) and so on. Friends ask if I saw an ad during "Programme X" (that they know I watched). 9 times out of 10 I've no memory of it whatsoever. Is this phenomena growing among people - I'd like to know if it is...
Perhaps someone will make a fortune by writing a program (OK ap - I'm showing my age) that reveals just what Facebook knows about you (especially if, at the end, it has a button that deletes said information!
Now, nit-picking you have "over 100 dates on each user" where I think you mean "100 datum points".
A very timely article Sven.
It is not surprising that Farcebook has 2.2 billion world-wide users, and in the early stages was inter-college, USA and I remember well when it became attractive in Australia, the rest of the world, and during the the massive-growth tentacles I was astounded at the amount of personal and private information spreading among the users.
I had been performing maintenance and servicing on the computers of many clients at that time until recently and my advice related to the best security against 'selling their souls to the devil' by was to say, "Would you wander into the bank, the post office and other stores with a placard on your back which publicised all the details of yours, and your relatives and friends' personal lives ?"
Shock, disbelief ensued ..... and the apathy toward strong security remained abundant with almost everyone with whom I had contact ... hence many visits with a 'computer disinfectant'.
Zuckerberg and his compadres had a dream, suddenly mega-dollars were available, like money growing on trees for harvesting which they harvested, but their cellar door was locked, the solid foundation supports were never installed ... and today we oldies are supposed to allow the insecure, un-tested, 'signs of the times' modern 'Facebook/Internet type quicksand technologies' to support the age-old foundations of security, honesty, privacy, truth and justice which has been tossed aside to allow underhanded, corrupt and complete dishonesty to be the controlling force.
Do people want the governments to meddle further into our lives by regulating social networks? Every time we give governments an inch they take a mile. It's time for people to take responsibility for their online life. Clear the cache, download info and cookies every time the browser is closed.
I do object to the mobile phone calls when I change browsers or devices. Facebook isn't the only one who abuses what I call a privilege granted by me. It is an information age Sven although I doubt most people see it that way. Anyone can have fun with social networks by liking lots of things one does not usually like. Learn how to write some fun scripts for your browser and their computer goes insane. Have a great weekend.
In this case I'm still hoping for the courts to draw the line accordingly. And if that means breaking up the giants among the data collectors into smaller businesses, so be it.
My problem with Facebook isn't the data they mine - if you use the Internet your data is being mined - but the fact that people think they're getting the "news" from Facebook (and Twitter and various other "social media" outlets).
Truly, too many people think that "if it's on the Internet, it has to be true". And look where that has led us...
Timely (maybe too late) and well presented article. Thank you Sven
I had that topic on my list for weeks but something exciting always came up that took the limelight. You're right, the most recent events would have been reason enough to publish the article earlier.
Thank Sven! For their own sake, I wish more people would wake up to the fact Facebook's primary function as a data-farm (as displayed years ago) by Zuckerberg's egotistical answer to a challenge to their strength of marketing prowess by pulling a hoax on a huge portion of users (in the one-to-two hundreds of thousands!) several years ago and then showing it had been 'bought' (hook, line & sinker) by some over 80% portion of his 'online suckers:' -- good, faithful Facebook subscribers!
That was enough for me and I immediately deleted ALL FACEBOOK DATA and have never looked back.
I'm hoping the recent discovery of their (although somewhat distant) meddling in the Trump campaign will raise awareness -- they have far-too-far-reaching tentacles, developing their oh-so-so-comprehensive data-reach -- on us all!
You know, I never thought that I would like Facebook. But once I joined, I never looked back. Most of my family and friends use this website, posting photographs and videos. Sometimes they share funny jokes... my more conservative friends even post silly political stuff, giving me a chance to poke fun at their political affiliation. Communication is easy with Messenger; I use it as often as I do email. Also, as a watch reviewer, Facebook is useful because my family and friends will share links to my reviews and this, of course, helps to improve their ratings on Google. Yes. Facebook has composed a profile on me... I know this because ads on this site tend to feature items I am interested in. But they are not along. If I go to my email site or The Globe and Mail (my newspaper) offers from vendors I deal with will also appear. Sure, everyone is upset about Facebook now... I, however, think the lose of a little privacy is worth the websites benefits.
I have never been tempted to use Facebook( or any other social media) nor do i use any of the instant messaging services as i can't see what value they would be to me. As far as I know none of my children, who are now in their forties and fifties don't use them either. I keep in touch with the people I wish to by email, telephone and face to face contact and obtain my news via radio, printed newspapers and and online websites. I don't feel that I am missing out by so doing.
Good blog, Sven.
I've been saying for a long time that Facebook is a digital stalker. Yet, while physical stalking is a crime, yet digital stalking is accepted by too many people.
Now, considering that in order to digitally stalk, the company MUST enter your property, whether that be a room in your house, or your clothes, to access the device to collect data. I don't think I'd want any physical stalker accessing my home or clothing to fill in a clipboard.
All of this personal data collection must stop. Sure, have my IP adderss. but that's it. A large part of the problem is people freely giving up data when they post, but they might not realise just how much is being given in the background via cookies and other trackers. I never click external Facebook buttons, and I only ever use the site via a VPN while in incogneto mode, and with uMatrix and uBlockOrigin browser extensions. I don't see any ads on Facebook, and I can control which requests get to my PC. No Facebook on my smartphone.
I am concerned about Paypal anyway as it is operating illegally under EU rules but it refuses to accept that a EU citizen can have an account anywhere. It, paypal just ignores the Luxembourg authorities. However, if you lived in the US say Ney York then you can have an address in Florida. One rule for them and one for erm oh yes them. Governments need to take hold and make these organisations comply...thing is the governments do not want that. Brexit will mean that the UK government can stop any things like that, it will not, it will become even more of a police state with no means of FOI exactly what Gove wants!
Two instances-----my wife has a Facebook account, I don't.
I bought something from B&Q with a credit card, that then appeared with her account as something she would like to buy, the second was something I bought online through PayPal , that then appeared within days. Quite frightening and potentially annoying if I wanted to keep it secret.
Thanks for the blog
Yes I think I am surprised about just how much they collect. But it doesn't surprise me that they do. Once you venture online in today's "connected" society you can pretty much kiss goodbye to annonimity without employing techniques that most of us just can't be bothered with. I don't have a FB account any more (in theory) as I was posted an awfull video that disgusted me. I did think I had set privacy quite well, but as you say if others don't you can appear anywhere. I feel for my kids, as they just don't know what lurks, and whilst taught cyber security to a point, no one teaches them privacy and how best to do their best to protect themselves.
Once again Sven great blog.