Facebook Money Never Sleeps

Document Sample
Facebook Money Never Sleeps Powered By Docstoc
This article is about the website. For the collection of photographs of people after which it is
named, see Facebook (directory).
                       Facebook Inc.

Type           Public
               Cambridge, Massachusetts, United
               States (2004)[1]
                        Mark Zuckerberg
                        Eduardo Saverin
Founder(s)              Dustin Moskovitz
                        Chris Hughes

Headquarters Menlo Park, California, U.S.
Area served    Worldwide
                        Mark Zuckerberg (CEO)
                        Sheryl Sandberg (COO)
Key people              David Ebersman (CFO)
                        Donald Graham (Chairman)

Industry       Internet
                 US$ 3.71 billion (2011), up from
               $1.97b (2010)[2]
Employees      3000+ (2011)[3]
Website        Facebook.com
IPv6 support www.v6.facebook.com
Alexa rank       2 (February 2012)[4]
Type of site   Social networking service
               Banner ads, referral marketing, casual
Registration   Required
               845 million[2] (active December 31,
Available in   Multilingual
Launched       February 4, 2004
Current        Active

Facebook is a social networking service and website launched in February 2004, operated and
privately owned by Facebook Inc..[1] As of February 2012, Facebook has more than 845
million active users.[5] Users must register before using the site, after which they may create a
personal profile, add other users as friends, and exchange messages, including automatic
notifications when they update their profile. Additionally, users may join common-interest
user groups, organized by workplace, school or college, or other characteristics, and
categorize their friends into lists such as "People From Work" or "Close Friends". The name
of the service stems from the colloquial name for the book given to students at the start of the
academic year by some university administrations in the United States to help students get to
know each other. Facebook allows any users who declare themselves to be at least 13 years
old to become registered users of the site. [6]

Facebook was founded by Mark Zuckerberg with his college roommates and fellow students
Eduardo Saverin, Dustin Moskovitz and Chris Hughes.[7] The Web site's membership was
initially limited by the founders to Harvard students, but was expanded to other colleges in the
Boston area, the Ivy League, and Stanford University. It gradually added support for students
at various other universities before opening to high school students, and eventually to anyone
aged 13 and over. However, based on ConsumersReports.org in May 2011, there are 7.5
million children under 13 with accounts, violating the site's terms of service. [8]

A January 2009 Compete.com study ranked Facebook as the most used social networking
service by worldwide monthly active users. [9] Entertainment Weekly included the site on its
end-of-the-decade "best-of" list, saying, "How on earth did we stalk our exes, remember our
co-workers' birthdays, bug our friends, and play a rousing game of Scrabulous before
Facebook?"[10] Quantcast estimates Facebook has 138.9 million monthly unique U.S. visitors
in May 2011.[11] According to Social Media Today, in April 2010 an estimated 41.6% of the
U.S. population had a Facebook account. [12] Nevertheless, Facebook's market growth started
to stall in some regions, with the site losing 7 million active users in the United States and
Canada in May 2011.[13] Facebook filed for an initial public offering on February 1, 2012.[14]


        1 History
        2 Company
            o 2.1 Ownership
            o 2.2 Management
            o 2.3 Revenue
            o 2.4 Open source contributions
        3 Website
            o 3.1 Functionality issues
            o 3.2 Privacy
                    3.2.1 FTC settlement
        4 Reception
      5 Criticism
      6 Impact
           o 6.1 Media impact
           o 6.2 Social impact
           o 6.3 Impact on Philanthropy
           o 6.4 Political impact
      7 In popular culture
      8 See also
      9 Notes
      10 References
      11 Further reading
      12 External links

Main articles: History of Facebook and Timeline of Facebook

Mark Zuckerberg wrote Facemash, the predecessor to Facebook, on October 28, 2003, while
attending Harvard as a sophomore. According to The Harvard Crimson, the site was
comparable to Hot or Not, and "used photos compiled from the online facebooks of nine
houses, placing two next to each other at a time and asking users to choose the 'hotter'

Mark Zuckerberg co-created Facebook in his Harvard dorm room.

To accomplish this, Zuckerberg hacked into the protected areas of Harvard's computer
network and copied the houses' private dormitory ID images. Harvard at that time did not
have a student "facebook" (a directory with photos and basic information), though individual
houses had been issuing their own paper facebooks in at least the mid-1980's. Facemash
attracted 450 visitors and 22,000 photo-views in its first four hours online.[15][17]

The site was quickly forwarded to several campus group list-servers, but was shut down a few
days later by the Harvard administration. Zuckerberg was charged by the administration with
breach of security, violating copyrights, and violating individual privacy, and faced expulsion.
Ultimately, however, the charges were dropped.[18] Zuckerberg expanded on this initial
project that semester by creating a social study tool ahead of an art history final, by uploading
500 Augustan images to a Web site, with one image per page along with a comment
section.[17] He opened the site up to his classmates, and people started sharing their notes.

The following semester, Zuckerberg began writing code for a new Web site in January 2004.
He was inspired, he said, by an editorial in The Harvard Crimson about the Facemash
incident.[19] On February 4, 2004, Zuckerberg launched "Thefacebook", originally located at

Six days after the site launched, three Harvard seniors, Cameron Winklevoss, Tyler
Winklevoss, and Divya Narendra, accused Zuckerberg of intentionally misleading them into
believing he would help them build a social network called HarvardConnection.com, while he
was instead using their ideas to build a competing product.[21] The three complained to the
Harvard Crimson, and the newspaper began an investigation. The three later filed a lawsuit
against Zuckerberg, subsequently settling.[22]

Membership was initially restricted to students of Harvard College, and within the first
month, more than half the undergraduate population at Harvard was registered on the
service.[23] Eduardo Saverin (business aspects), Dustin Moskovitz (programmer), Andrew
McCollum (graphic artist), and Chris Hughes soon joined Zuckerberg to help promote the
Web site. In March 2004, Facebook expanded to Stanford, Columbia, and Yale.[24] It soon
opened to the other Ivy League schools, Boston University, New York University, MIT, and
gradually most universities in Canada and the United States. [25][26]

Facebook was incorporated in mid-2004, and the entrepreneur Sean Parker, who had been
informally advising Zuckerberg, became the company's president. [27] In June 2004, Facebook
moved its base of operations to Palo Alto, California.[24] It received its first investment later
that month from PayPal co-founder Peter Thiel.[28] The company dropped The from its name
after purchasing the domain name facebook.com in 2005 for $200,000.[29]

                   Total active users[N 1]
          Date                       Days later Monthly growth[N 2]
                       (in millions)
 August 26, 2008    100[30]       1,665        178.38%
 April 8, 2009      200           225          13.33%
 September 15, 2009 300           160          9.38%
 February 5, 2010 400             143          6.99%
 July 21, 2010      500           166          4.52%
                        [35][N 3]
 January 5, 2011    600           168          3.57%
 May 30, 2011       700           145          3.45%
 September 22, 2011 800           115          3.73%

Facebook launched a high-school version in September 2005, which Zuckerberg called the
next logical step.[38] At that time, high-school networks required an invitation to join. [39]
Facebook later expanded membership eligibility to employees of several companies,
including Apple Inc. and Microsoft.[40] Facebook was then opened on September 26, 2006, to
everyone of age 13 and older with a valid email address.[41][42]
On October 24, 2007, Microsoft announced that it had purchased a 1.6% share of Facebook
for $240 million, giving Facebook a total implied value of around $15 billion.[43] Microsoft's
purchase included rights to place international ads on Facebook. [44] In October 2008,
Facebook announced that it would set up its international headquarters in Dublin, Ireland.[45]
In September 2009, Facebook said that it had turned cash-flow positive for the first time.[46] In
November 2010, based on SecondMarket Inc., an exchange for shares of privately held
companies, Facebook's value was $41 billion (slightly surpassing eBay's) and it became the
third largest U.S. Web company after Google and Amazon.[47] Facebook has been identified
as a possible candidate for an IPO by 2013.[48] The Wall Street Journal has reported that
Facebook is looking to raise as much as $10 billion in its IPO and that it plans to file
paperwork as early as February 3rd.[49][50][51]

Traffic to Facebook increased steadily after 2009. More people visited Facebook than Google
for the week ending March 13, 2010.[52]

In March 2011 it was reported that Facebook removes approximately 20,000 profiles from the
site every day for various infractions, including spam, inappropriate content and underage use,
as part of its efforts to boost cyber security. [53]

In early 2011, Facebook announced plans to move to its new headquarters, the former Sun
Microsystems campus in Menlo Park, California.[54][55]

Release of statistics by DoubleClick showed that Facebook reached one trillion pageviews in
the month of June 2011, making it the most visited Web site in the world. [56] It should
however be noted that Google and some of its selected Web sites are not counted in the
DoubleClick rankings. According to the Nielsen Media Research study, released in December
2011, Facebook is the second most accessed website in the US. [57]


Entrance to Facebook's previous headquarters in the Stanford Research Park, Palo Alto,


The ownership percentages of the company are[when?] as follows. Mark Zuckerberg: 28.4%,[58]
Accel Partners: 10%, Digital Sky Technologies: 10%,[59] Dustin Moskovitz: 6%, Eduardo
Saverin: 5%, Sean Parker: 4%, Peter Thiel: 3%, Greylock Partners and Meritech Capital
Partners: between 1 to 2% each, Microsoft: 1.3%, Li Ka-shing: 0.75%, the Interpublic Group:
less than 0.5%. A small group of current and former employees and celebrities own less than
1% each, including Matt Cohler, Jeff Rothschild, Adam D'Angelo, Chris Hughes, and Owen
Van Natta, while Reid Hoffman and Mark Pincus have sizable holdings of the company. The
remaining 30% or so are owned by employees, an undisclosed number of celebrities, and
outside investors.[60] Adam D'Angelo, chief technology officer and friend of Zuckerberg,
resigned in May 2008. Reports claimed that he and Zuckerberg began quarreling, and that he
was no longer interested in partial ownership of the company. [61]


Key management personnel comprise Chris Cox (VP of Product), Sheryl Sandberg (COO),
and Donald E. Graham (Chairman). As of April 2011, Facebook has over 2,000 employees,
and offices in 15 countries.[62] Other managers include chief financial officer David Ebersman
and public relations head Elliot Schrage.[63]


Most of Facebook's revenue comes from advertising. [64][65] Microsoft is Facebook's exclusive
partner for serving banner advertising,[66] and therefore Facebook serves only advertisements
that exist in Microsoft's advertisement inventory.

 (estimated, in millions US$)
 Year Revenue Growth
 2006 $52[67]        —
 2007 $150         188%
 2008 $280         87%
 2009 $775         177%
 2010 $2,000 158%
 2011 $4,270[72] 114%

Facebook generally has a lower clickthrough rate (CTR) for advertisements than most major
Web sites. According to BusinessWeek.com, banner advertisements on Facebook have
generally received one-fifth the number of clicks compared to those on the Web as a
whole,[73] although specific comparisons can reveal a much larger disparity. For example,
while Google users click on the first advertisement for search results an average of 8% of the
time (80,000 clicks for every one million searches),[74] Facebook's users click on
advertisements an average of 0.04% of the time (400 clicks for every one million pages). [75]

Sarah Smith, who was Facebook's Online Sales Operations Manager, reports that successful
advertising campaigns on the site can have clickthrough rates as low as 0.05% to 0.04%, and
that CTR for ads tend to fall within two weeks. [76] By comparison, the CTR for competing
social network MySpace is about 0.1%, about 2.5 times better than Facebook's rate but still
low compared to many other Web sites. According to BizReport.com, Facebook's low CTR is
because Facebook users are more technologically savvy and therefore use ad blocking
software to hide advertisements, users are younger and therefore better at ignoring advertising
messages, users spend their time communicating with friends and therefore have their
attention diverted away from advertisements. [77]

On pages for brands and products, however, some companies have reported CTR as high as
6.49% for Wall posts.[78] A study found that, for video advertisements on Facebook, over 40%
of users who viewed the videos viewed the entire video, while the industry average was 25%
for in-banner video ads.[79]

Open source contributions

Facebook is both a consumer and contributor of free and open source software.[80] Facebook's
contributions include: HipHop for PHP,[81] Fair scheduler in Apache Hadoop,[82] Apache
Hive, Apache Cassandra,[83] and the Open Compute Project [84].

Facebook also contributes to other opensource projects such as Oracle's MySQL database
engine.[85] [86]

Main articles: Facebook features and Facebook Platform
      This section may be too long to read and navigate comfortably. Please consider moving
      more of the content into sub-articles and using this article for a summary of the key
      points of the subject. (December 2011)

Facebook "Timeline" profile shown in November 2011
Facebook profile shown in 2007

Profile shown on Thefacebook in 2005
Facebook mobile graphical user interface

Users can create profiles with photos, lists of personal interests, contact information, and
other personal information. Users can communicate with friends and other users through
private or public messages and a chat feature. They can also create and join interest groups
and "like pages" (called "fan pages" until April 19, 2010), some of which are maintained by
organizations as a means of advertising. [87]

To allay concerns about privacy, Facebook enables users to choose their own privacy settings
and choose who can see specific parts of their profile. [88] The Web site is free to users, and
generates revenue from advertising, such as banner ads.[89] Facebook requires a user's name
and profile picture (if applicable) to be accessible by everyone. Users can control who sees
other information they have shared, as well as who can find them in searches, through their
privacy settings.[90]

The media often compares Facebook to MySpace, but one significant difference between the
two Web sites is the level of customization. [91] Another difference is Facebook's requirement
that users give their true identity, a demand that MySpace does not make. [92] MySpace allows
users to decorate their profiles using HTML and Cascading Style Sheets (CSS), while
Facebook allows only plain text.[93] Facebook has a number of features with which users may
interact. They include the Wall, a space on every user's profile page that allows friends to post
messages for the user to see;[94] Pokes, which allows users to send a virtual "poke" to each
other (a notification then tells a user that they have been poked);[95] Photos, where users can
upload albums and photos;[96] and Status, which allows users to inform their friends of their
whereabouts and actions.[97] Depending on privacy settings, anyone who can see a user's
profile can also view that user's Wall. In July 2007, Facebook began allowing users to post
attachments to the Wall, whereas the Wall was previously limited to textual content only. [94]
On September 6, 2006, a News Feed was announced, which appears on every user's
homepage and highlights information including profile changes, upcoming events, and
birthdays of the user's friends.[98] This enabled spammers and other users to manipulate these
features by creating illegitimate events or posting fake birthdays to attract attention to their
profile or cause.[99] Initially, the News Feed caused dissatisfaction among Facebook users;
some complained it was too cluttered and full of undesired information, others were
concerned that it made it too easy for others to track individual activities (such as relationship
status changes, events, and conversations with other users). [100]

In response, Zuckerberg issued an apology for the site's failure to include appropriate
customizable privacy features. Since then, users have been able to control what types of
information are shared automatically with friends. Users are now able to prevent user-set
categories of friends from seeing updates about certain types of activities, including profile
changes, Wall posts, and newly added friends.[101]

On February 23, 2010, Facebook was granted a patent [102] on certain aspects of its News Feed.
The patent covers News Feeds in which links are provided so that one user can participate in
the same activity of another user. [103] The patent may encourage Facebook to pursue action
against Web sites that violate its patent, which may potentially include Web sites such as

One of the most popular applications on Facebook is the Photos application, where users can
upload albums and photos.[105] Facebook allows users to upload an unlimited number of
photos, compared with other image hosting services such as Photobucket and Flickr, which
apply limits to the number of photos that a user is allowed to upload. During the first years,
Facebook users were limited to 60 photos per album. As of May 2009, this limit has been
increased to 200 photos per album.[106][107][108][109]

Privacy settings can be set for individual albums, limiting the groups of users that can see an
album. For example, the privacy of an album can be set so that only the user's friends can see
the album, while the privacy of another album can be set so that all Facebook users can see it.
Another feature of the Photos application is the ability to "tag", or label, users in a photo. For
instance, if a photo contains a user's friend, then the user can tag the friend in the photo. This
sends a notification to the friend that they have been tagged, and provides them a link to see
the photo.[110]

Facebook Notes was introduced on August 22, 2006, a blogging feature that allowed tags and
embeddable images. Users were later able to import blogs from Xanga, LiveJournal, Blogger,
and other blogging services.[41] During the week of April 7, 2008, Facebook released a
Comet-based[111] instant messaging application called "Chat" to several networks, [112] which
allows users to communicate with friends and is similar in functionality to desktop-based
instant messengers.

Facebook launched Gifts on February 8, 2007, which allows users to send virtual gifts to their
friends that appear on the recipient's profile. Gifts cost $1.00 each to purchase, and a
personalized message can be attached to each gift. [113][114] On May 14, 2007, Facebook
launched Marketplace, which lets users post free classified ads. [115] Marketplace has been
compared to Craigslist by CNET, which points out that the major difference between the two
is that listings posted by a user on Marketplace are seen only by users in the same network as
that user, whereas listings posted on Craigslist can be seen by anyone.[116]
On July 20, 2008, Facebook introduced "Facebook Beta", a significant redesign of its user
interface on selected networks. The Mini-Feed and Wall were consolidated, profiles were
separated into tabbed sections, and an effort was made to create a "cleaner" look. [117] After
initially giving users a choice to switch, Facebook began migrating all users to the new
version starting in September 2008.[118] On December 11, 2008, it was announced that
Facebook was testing a simpler signup process. [119]

On June 13, 2009, Facebook introduced a "Usernames" feature, whereby pages can be linked
with simpler URLs such as http://www.facebook.com/facebook instead of
http://www.facebook.com/profile.php?id=20531316728.                    Many new smartphones
offer access to Facebook services through either their Web browsers or applications. An
official Facebook application is available for the operating systems Android, iOS, and
webOS. Nokia and Research In Motion both provide Facebook applications for their own
mobile devices. More than 425 million active users access Facebook through mobile devices
across 200 mobile operators in 60 countries. [121]

On November 15, 2010, Facebook announced a new "Facebook Messages" service. In a
media event that day, CEO Mark Zuckerberg said, "It's true that people will be able to have an
@facebook.com email addresses, but it's not email". The launch of such a feature had been
anticipated for some time before the announcement, with some calling it a "Gmail killer". The
system, to be available to all of the Web site's users, combines text messaging, instant
messaging, emails, and regular messages, and will include privacy settings similar to those of
other Facebook services. Codenamed "Project Titan", Facebook Messages took 15 months to

In February 2011, Facebook began to use the hCalendar microformat to mark up events, and
the hCard microformat for the events' venues, enabling the extraction of details to users' own
calendar or mapping applications.[124]

Since April 2011 Facebook users have had the ability to make live voice calls via Facebook
Chat, allowing users to chat with others from all over the world. This feature, which is
provided free through T-Mobile's new Bobsled service, lets the user add voice to the current
Facebook Chat as well as leave voice messages on Facebook.[125]

On July 6, 2011, Facebook launched its video calling services using Skype as its technology
partner. It allows one to one calling using a Skype Rest API. [126]

On September 14, 2011, Facebook launched a Subscribe button. The feature allows for users
to follow public updates, and these are the people most often broadcasting their ideas. [127]
There were major modifications that the site released on September 22, 2011. [128]

Functionality issues

As of May 2011, users with computers that use the PowerPC G5 processor are not able to
view Flash content from within Facebook as it requires the latest upgrade of Adobe Flash
player which is not compatible with this processor architecture. Due to this issue, video
content hosted on Facebook can no longer be played on devices using the G5 processor. [129]

According to comScore, an internet marketing research company, Facebook collects as much
data from its visitors as Google and Microsoft, but considerably less than Yahoo!.[130] In 2010,
the security team began expanding its efforts to reduce the risks to users' privacy,[131] but
privacy concerns remain. On November 6, 2007, Facebook launched Facebook Beacon,
which was an ultimately failed attempt to advertise to friends of users using the knowledge of
what purchases friends made.

FTC settlement

On November 29, 2011, Facebook agreed to settle US Federal Trade Commission charges
that it deceived consumers by failing to keep privacy promises. [132]


Facebook popularity. Active users of Facebook increased from just a million in 2004 to over
750 million in 2011.[133]

Facebook - Users by Age.

According to comScore, Facebook is the leading social networking site based on monthly
unique visitors, having overtaken main competitor MySpace in April 2008.[134] ComScore
reports that Facebook attracted 130 million unique visitors in May 2010, an increase of
8.6 million people.[135] According to Alexa, the Web site's ranking among all Web sites
increased from 60th to 7th in worldwide traffic, from September 2006 to September 2007, and
is currently 2nd.[136] Quantcast ranks the Web site 2nd in the U.S. in traffic, [137] and
Compete.com ranks it 2nd in the U.S.[138] The Web site is the most popular for uploading
photos, with 50 billion uploaded cumulatively. [139] In 2010, Sophos's "Security Threat Report
2010" polled over 500 firms, 60% of which responded that they believed that Facebook was
the social network that posed the biggest threat to security, well ahead of MySpace, Twitter,
and LinkedIn.[131]

Facebook is the most popular social networking site in several English-speaking countries,
including Canada,[140] the United Kingdom,[141] and the United States.[142][143][144][145] In
regional Internet markets, Facebook penetration is highest in North America (69 percent),
followed by Middle East-Africa (67 percent), Latin America (58 percent), Europe (57
percent), and Asia-Pacific (17 percent).[146]

The Web site has won awards such as placement into the "Top 100 Classic Websites" by PC
Magazine in 2007,[147] and winning the "People's Voice Award" from the Webby Awards in
2008.[148] In a 2006 study conducted by Student Monitor, a New Jersey-based company
specializing in research concerning the college student market, Facebook was named the
second most popular thing among undergraduates, tied with beer and only ranked lower than
the iPod.[149]

On March 2010, Judge Richard Seeborg issued an order approving the class settlement in
Lane v. Facebook, Inc., the class action lawsuit arising out of Facebook's Beacon program.

In 2010, Facebook won the Crunchie "Best Overall Startup Or Product" for the third year in a
row[150] and was recognized as one of the "Hottest Silicon Valley Companies" by
Lead411.[151] However, in a July 2010 survey performed by the American Customer
Satisfaction Index, Facebook received a score of 64 out of 100, placing it in the bottom 5% of
all private-sector companies in terms of customer satisfaction, alongside industries such as the
IRS e-file system, airlines, and cable companies. The reasons why Facebook scored so poorly
include privacy problems, frequent changes to the Web site's interface, the results returned by
the News Feed, and spam.[152]

In December 2008, the Supreme Court of the Australian Capital Territory ruled that Facebook
is a valid protocol to serve court notices to defendants. It is believed to be the world's first
legal judgement that defines a summons posted on Facebook as legally binding.[153] In March
2009, the New Zealand High Court associate justice David Gendall allowed for the serving of
legal papers on Craig Axe by the company Axe Market Garden via Facebook. [154][155]
Employers (such as Virgin Atlantic Airways) have also used Facebook as a means to keep
tabs on their employees and have even been known to fire them over posts they have

By 2005, the use of Facebook had already become so ubiquitous that the generic verb
"facebooking" had come into use to describe the process of browsing others' profiles or
updating one's own.[157] In 2008, Collins English Dictionary declared "Facebook" as its new
Word of the Year.[158] In December 2009, the New Oxford American Dictionary declared its
word of the year to be the verb "unfriend", defined as "To remove someone as a 'friend' on a
social networking site such as Facebook. As in, 'I decided to unfriend my roommate on
Facebook after we had a fight.'"[159]

In early 2010, Openbook was established, an avowed parody (and privacy advocacy) Web
site[160] that enables text-based searches of those Wall posts that are available to "Everyone",
i.e. to everyone on the Internet.
Writers for The Wall Street Journal found in 2010 that Facebook apps were transmitting
identifying information to "dozens of advertising and Internet tracking companies". The apps
used an HTTP referrer which exposed the user's identity and sometimes their friends'.
Facebook said, "We have taken immediate action to disable all applications that violate our

In January 2012 just before Facebook was scheduled to file an S-1 with the U.S. Securities
and Exchange Commission for an IPO, according to socialbakers.com, countries with the
most Facebook users were:

       United States with 152.5 million members,
       India with 43.5 million members
       Indonesia with 43.1 million members
       Brazil with 37.9 million members
       Mexico with 32.0 million members

All of them above totally 309 million members or about 38.6 percent of 800 million
Facebook's worldwide members.[162]

Main article: Criticism of Facebook

Facebook has met with controversies. It has been blocked intermittently in several countries
including the People's Republic of China,[163] Iran,[164] Uzbekistan,[165] Pakistan,[166] Syria,[167]
and Bangladesh on different bases. For example, it was banned in many countries of the world
on the basis of allowed content judged as anti-Islamic and containing religious discrimination.
It has also been banned at many workplaces to prevent employees from using it during work
hours.[168] The privacy of Facebook users has also been an issue, and the safety of user
accounts has been compromised several times. Facebook has settled a lawsuit regarding
claims over source code and intellectual property. [169] In May 2011 emails were sent to
journalists and bloggers making critical allegations about Google's privacy policies; however
it was later discovered that the anti-Google campaign, conducted by PR giant Burson-
Marsteller, was paid for by Facebook in what CNN referred to as "a new level skullduggery"
and which Daily Beast called a "clumsy smear". [170]

In July 2011 German authorities began to discuss the prohibition of events organized on
Facebook. The decision is based on several cases of overcrowding by people not originally
invited.[171][172] In one instance, 1,600 "guests" attended the 16th birthday party for a Hamburg
girl who accidentally posted the invitation for the event as public. After reports of
overcrowding, more than a hundred police were deployed for crowd control. A policeman was
injured and eleven participants were arrested for assault, property damage and resistance to
authorities.[173] In another unexpectedly overcrowded event, 41 young people were arrested
and at least 16 injured.[174]

In May 2011, HCL Technologies announced that approximately 50% of British employers
had banned Facebook from the workplace. [175]

A 2011 study in the online journal First Monday, "Why Parents Help Their Children Lie to
Facebook About Age: Unintended Consequences of the Children's Online Privacy Protection
Act," examines how parents consistently enable children as young as 10 years old to sign up
for accounts, directly violating Facebook's policy banning young visitors. This policy
technically allows Facebook to avoid conflicts with the 1998 Children's Online Privacy
Protection Act (COPPA), requiring that minors aged 13 or younger gain explicit parental
consent to access commercial websites. Of the more than 1,000 households surveyed for the
study, more than three-quarters (76%) of parents reported that their child joined Facebook
when she was younger than 13, the minimum age in the site's terms of service. The study
notes that, in response to widespread reports of underage users, a Facebook executive has said
that "Facebook removes 20,000 people a day, people who are underage." The study's authors
also note, "Indeed, Facebook takes various measures both to restrict access to children and
delete their accounts if they join." The findings of the study raise questions primarily about
the shortcomings of federal law, but also implicitly continue to raise questions about whether
or not Facebook does enough to publicize its terms of service with respect to minors. Only
53% of parents said they were aware that Facebook has a minimum signup age; 35% of these
parents believe that the minimum age is a site recommendation (not a condition of site use), or
thought the signup age was 16 or 18, and not 13. [176]

In November 2011, several Facebook users reported that their accounts were hacked and their
profile pictures were replaced with pornographic images. For more than a week, users' news
feeds were spammed with pornographic, violent and sexual contents. It has been reported that
more than 200,000 accounts in Bangalore, India were hacked. Facebook has denied the
claims, citing that "safety of the users was on the top of their priority list". [177][178]

There has been much user discontent over Facebook's mandatory changeover to the new
Timeline profile. Some Facebook users reported discontent with having many Facebook
status updates and photos from the past easily visible. [179][180]

Media impact

In April 2011, Facebook launched a new portal for marketers and creative agencies to help
them develop brand promotions on Facebook. [181] The company began its push by inviting a
select group of British advertising leaders to meet Facebook's top executives at an
"influencers' summit" in February 2010. Facebook has now been involved in campaigns for
True Blood, American Idol, and Top Gear.[182]

Social impact

Facebook has affected the social life and activity of people in various ways. Especially with
its availability on many mobile devices, Facebook allows users to continuously stay in touch
with friends, relatives and other acquaintances wherever they are in the world, as long as there
is access to the Internet. It can also unite people with common interests and/or beliefs through
groups and other pages, and has been known to reunite lost family members and friends. One
such reunion was between John Watson and the daughter he had been seeking for 20 years.
They met after Watson found her Facebook profile. [183] Another father-daughter reunion was
between Tony Macnauton and Frances Simpson, who had not seen each other for nearly 48
Some argue that Facebook is beneficial to one's social life because they can continuously stay
in contact with their friends and relatives, while others say that it can cause increased
antisocial tendencies because people are not directly communicating with each other. Some
studies have named Facebook as a source of problems in relationships. Several news stories
have suggested that using Facebook causes divorce and infidelity, but the claims have been
questioned and refuted by other commentators. [185][186]

Impact on Philanthropy

The idea of facilitating interaction between individuals via a web platform connecting user-
generated profile pages has been taken beyond social networking, notably by person-to-
person charities, which allow individuals to contribute small amounts to charitable projects
for other individuals. Kiva pioneered the application of this concept to microfinance in 2005,
offering the first web-based service to publish individual microfinance loan profiles for
funding. Kiva raises funds for local intermediary microfinance organizations which post
stories and updates on behalf of the borrowers. Lenders can contribute as little as $25 to loans
of their choice, and receive their money back as borrowers repay. A similar web-based
microfinance funding platform that focuses on China, Wokai, brands itself as a "Facebook for
Farmers".[187] However, unlike Facebook, Kiva and Wokai do not enable direct
communication between their members.[188][189]

The recent spread of cheap internet access in developing countries has made genuine
international person-to-person philanthropy increasingly feasible. In 2009 the US-based
nonprofit Zidisha tapped into this trend to offer the first person-to-person microfinance
platform to link lenders and borrowers across international borders without intermediaries.
Inspired by both Facebook and eBay, Zidisha facilitates direct dialogue and microlending
transactions between individual web users worldwide and computer-literate, low-income
entrepreneurs in developing countries. Zidisha members can fund loans for as little as a dollar,
which the borrowers then use to develop business activities that improve their families'
incomes while repaying loans to the members with interest. As with Facebook, Zidisha
borrowers create their own profile pages through which they share photos and information
about themselves and their businesses. A feature similar to the Wall on Facebook profiles
allows borrowers to dialogue directly with lenders via comments posted on their profile
pages. This direct person-to-person connection modeled after Facebook's social networking
functionality allows Zidisha members themselves to take on many of the communication and
recording tasks traditionally performed by local organizations, dramatically reducing the cost
of microfinance services to the entrepreneurs.[190]

Political impact
The stage at the Facebook – Saint Anselm College debates in 2008.
       Wikinews has related news: Egyptian man names daughter 'Facebook'

Facebook's role in the American political process was demonstrated in January 2008, shortly
before the New Hampshire primary, when Facebook teamed up with ABC and Saint Anselm
College to allow users to give live feedback about the "back to back" January 5 Republican
and Democratic debates.[191][192][193] Charles Gibson moderated both debates, held at the Dana
Center for the Humanities at Saint Anselm College. Facebook users took part in debate groups
organized around specific topics, register to vote, and message questions. [194]

Over a million people installed the Facebook application "US politics" in order to take part,
and the application measured users' responses to specific comments made by the debating
candidates.[195] This debate showed the broader community what many young students had
already experienced: Facebook was a popular and powerful new way to interact and voice
opinions. An article by Michelle Sullivan of Uwire.com illustrates how the "facebook effect"
has affected youth voting rates, support by youth of political candidates, and general
involvement by the youth population in the 2008 election. [196]

In February 2008, a Facebook group called "One Million Voices Against FARC" organized
an event in which hundreds of thousands of Colombians marched in protest against the
Revolutionary Armed Forces of Colombia, better known as the FARC (from the group's
Spanish name).[197] In August 2010, one of North Korea's official government Web sites and
the official news agency of the country, Uriminzokkiri, joined Facebook.[198]

In 2010 an English director of public health, whose staff was researching syphilis, linked and
attributed a rise in cases of the disease in areas of Britain to Facebook. The reports of this
research were rebuked by Facebook as "ignoring the difference between correlation and

In 2011 a controversial ruling by French government to uphold a 1992 decree which stipulates
that commercial enterprises should not be promoted on news programs. President Nicolas
Sarkozy's colleagues have agreed has said that it will enforce a law so that the word
"Facebook" will not be allowed to be spoken on the television or on the radio. [200]

In 2011, Facebook filed paperwork with the Federal Election Commission to form a political
action committee under the name FB PAC.[201] In an email to The Hill, a spokesman for
Facebook said "FB PAC will give our employees a way to make their voice heard in the
political process by supporting candidates who share our goals of promoting the value of
innovation to our economy while giving people the power to share and make the world more
open and connected."[202]

In popular culture
       This "In popular culture" section may contain minor or trivial references. Please
       reorganize this content to explain the subject's impact on popular culture rather than
       simply listing appearances, and remove trivial references. (January 2012)
               Wikinews has news involving Facebook:
 Bloggers investigate social networking Web sites
 News services and World Wide Web companies increase Persian language services
    after Iranian presidential election

   Facebook was mentioned between Dwane Johnson and anothr actor in the 2010film,
    Tooth Fairy
   At age 102, Ivy Bean of Bradford, England joined Facebook in 2008, making her one
    of the oldest people ever on Facebook. An inspiration to other residents of the care
    home in which she lived,[203] she quickly became more widely known and several fan
    pages were made in her honor. She visited Prime Minister Gordon Brown and his
    wife, Sarah, in Downing Street early in 2010.[204] Some time after creating her
    Facebook page, Bean joined Twitter, when she passed the maximum number of
    friends allowed by Facebook. She became the oldest person to ever use the Twitter
    Web site. At the time of her death in July 2010, she had 4,962 friends on Facebook
    and more than 56,000 followers on Twitter. Her death was widely reported in the
    media and she received tributes from several notable media personalities. [205]
   American author Ben Mezrich published a book in July 2009 about Mark Zuckerberg
    and the founding of Facebook, titled The Accidental Billionaires: The Founding of
    Facebook, A Tale of Sex, Money, Genius, and Betrayal.[206]
   In response to the Everybody Draw Mohammed Day controversy and the ban of the
    Web site in Pakistan, an Islamic version of the Web site was created, called
   "You Have 0 Friends", an April 2010 episode of the American animated comedy
    series, South Park, parodied Facebook.[208]
   The Social Network, a drama film directed by David Fincher about the founding of
    Facebook, was released October 1, 2010.[209] The film features an ensemble cast
    consisting of Jesse Eisenberg as Mark Zuckerberg, Andrew Garfield as Eduardo
    Saverin, Justin Timberlake as Sean Parker, and Armie Hammer as Cameron and Tyler
    Winklevoss. The film was written by Aaron Sorkin and adapted from Ben Mezrich's
    2009 book. The film was distributed by Columbia Pictures. No staff members of
    Facebook, including Zuckerberg, were involved with the project. However, one of
    Facebook's co-founders, Eduardo Saverin, was a consultant for Mezrich's book. Mark
    Zuckerberg has said that The Social Network is inaccurate.[210]
   On September 10, 2010 This American Life aired their Right to Remain Silent
    episode. It featured a story about Joe Lipari using a quote from Fight Club as his
    Facebook status and being arrested on suspicions of terrorism.[211]
   On February 22, 2011, an Egyptian baby was named "Facebook" to commemorate the
    vital role Facebook and other social media played in Egypt's revolution.[212]
   On May 16, 2011, an Israeli couple named their daughter after the Facebook "like"
    feature. They explained that it wasn't to advertise for Facebook, but because they
    fancied the meaning behind the word.[213][214]

Shared By: