- Despite these good figures, the firm warned that in 2021 they expect “headwinds for the personalized advertising sector.”
- Facebook has benefited during the pandemic year from the trend of people spending more time at home.
- Facebook is in the middle of two court cases against it for alleged monopolistic practices.
During the past twelve months, the revenue of Facebook— the most used social network in the world— shot up, mostly due to the sale of advertising space on the Internet and services related to this activity. Facebook’s shares reported to their holders during the past year $10.09 per share, compared to $6.43 the previous year.
Despite these good figures, the firm warned that in 2021 they expect “headwinds for the personalized advertising sector,” which include changes in privacy policies announced by Apple for the iOS 14 operating system, to which Facebook is vigorously opposed.
Such is the rejection of the social network to this increase in privacy, that in the telephone call with investors after the presentation of results, Mr. Zuckerberg came to brand Apple as a competitor of Facebook, and therefore argued that the iPhone firm takes this measured “by competitive interests,” and not “to help people.”
Facebook Benefited During the Pandemic
The Menlo Park, California-based company, which also owns other popular apps, such as Instagram and WhatsApp, has benefited during the pandemic year from the trend of people spending more time at home, browsing and buying online, like other big technology companies.
It also triggered doubts about whether by not accepting the new conditions of use, the user would lose their account and the app would disappear from their phone.
Pending Judicial Cases
In parallel, Facebook is in the middle of two court cases against it for alleged monopolistic practices— one presented by the authorities of 48 states and another by the US federal government— for allegedly violating rules in favor of free competition and with the aim of ending their “illegal monopoly.”
Both parties accuse the company of illegally acquiring competitors, such as Instagram and WhatsApp, and thereby depriving consumers of the benefits of a competitive market and better privacy protections.
Among the measures they seek highlights the possibility that the courts will force Facebook to get rid of these two popular applications, which it bought for billions of dollars.