Facebook weathers another bad week after political bias audit, Libra pushback
Added 08-21-19 09:04:02pm EST - “Wall Street has remained mostly bullish on Facebook despite scrutiny of its data practices, allegations of political bias and evident government mistrust of Libra.” - Foxbusiness.com
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Morning Business Outlook: Facebook is introducing a clear history privacy tool; McDonald's is hoping to brew a little kindness in honor of the McCafe's 10th anniversary.
Embattled social media giant Facebook faces challenges on several fronts this week as regulators and pundits scrutinize everything from its planned cryptocurrency to its efforts to address bias.
European Union antitrust regulators have launched a probe into Libra, the Facebook-backed cryptocurrency, amid concerns that the payment system could unfairly impact rivals and hurt competition, Bloomberg reported. In a separate dispute, Facebook faced bipartisan criticism after the release of an internal audit of alleged conservative bias on its platform, which did not definitively say whether there was found evidence to support claims that the social media platform suppresses conservative voices.
Neither development had a discernible impact on Facebook stock, as shares were flat for the week through the end of trading on Wednesday and are up nearly 40 percent for the year as earnings remain strong.
“I think we've passed the tipping point of negative publicity on Facebook,” said Arun Sundararajan, a professor at New York University’s Stern School of Business. “Users are likely getting immune to new reports relating to privacy or bias, so it is possible that Facebook is over the most challenging phase on this front. As the antitrust cases against Facebook pick up steam, they are likely to become the primary investor focus.”
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