Ever since the breaking news a week ago of the Cambridge Analytica data mining revelations, there has been a lot going on. At first, Facebook apologized in order to reduce its role in the scandal, and afterwards, opened the door to being regulated.
After this had happened, along came another scandal that around around the collection of Android users’ calls and SMS histories, which Facebook has sought to clarify. Senators called on CEO Mark Zuckerberg to testify before Congress, which he has said he is willing do.
There are numerous articles that are written, and currently being written, about the consequences of these controversies, as well as “how to fix Facebook.” Now, there are five threats that are interconnected, which are all tied to Facebook, and will affect the company in both the short and long term. Some are more serious than others. These threats are:
- Advertiser abandonment.
- Investor disenchantment.
- User disengagement.
- Fines and litigation.
- Regulatory action.