What happened to Facebook today w’t happen to Apple

Facebook has lost more value today than any other company in history: $ 120 billi. The sell-off took place after CEO Mark Zuckerberg admitted that growing public ccerns about privacy, and the likely respse from lawmakers and regulators, would strike the company where it hurts: in the wallet.

The same day, Facebook lost 19% of its value, the price of Apple’s stock has not been affected. This is because both companies have diametrically opposed views the privacy rights of the public. What hurts Facebook is, in fact, e of the strengths of Apple.

The entire Facebook business model collects private data users and sells them to advertisers. The people who use its social network are not the customers, they are the products sold.

But the company’s CEO just admits that it’s getting harder and harder. S addressing investors last night, Zuckerberg warned “In the future, we will ctinue to invest heavily in security and privacy because we have a respsibility to protect people. But as I have said in past calls, we are investing so much in safety that it will have a significant impact our profitability. ”

Prior to this statement, Zuckerberg was the fifth richest man in the United States. He lost $ 15 billi today, putting him 11th the list.

Apple leans back to protect users’ privacy

Apple, by ctrast, firmly believes in protecting the privacy of iPhone, iPad and Mac owners. An iOS pop-up window explains the attitude of this company: “Apple believes that privacy is a fundamental human right, so every Apple product is designed to minimize the collecti and use of your data, use device processing as much as possible ctrol over your information. ”

The Mac manufacturer puts his mey where he is, even when it makes product creati more difficult. It would be very easy for the HomePod smart speaker or the Apple Maps app to collect information about their users. To avoid this, Apple uses differential privacy (.pdf). The company says it allows it to “better understand what many Apple users do, while helping to preserve the privacy of individual users. Differential privacy transforms information shared with Apple before they leave the user’s device so that Apple can never reproduce the true data.

Tim Cook vs. Mark Zuckerberg

CEO Tim Cook summed up Apple ‘s attitude when he said this spring: “We could make a lot of mey if we metize our customer – if our customer was our product. We chose not to do that. ”

Zuckerberg of Facebook prefers to talk about the benefits of offering a free service. “At Facebook, we are squarely the side of hard-working companies to charge you less and provide a free service that everye can use.”

But the sale of nearly 20% of Facebook has come because the company goes beyd simply selling ads to support its website. It profiles absolutely everything it can about its users and even collects data n-users. This information is sold to advertisers.

What it does becomes ctroversial to the point where there is talk in the United States and Europe of more regulati its business model. And that will hurt profits. He certainly hurt Zuckerberg’s wallet today.

Wrap-up

What’s interesting is that the same privacy ccerns and regulatory potential could hurt Google as much. He has the same business model as Facebook. Despite this, the shares of Alphabet, the parent company of Google, have risen slightly today.

Source

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