This archive report was first published on 21 August 2019.
Facebook Inc has taken steps to address growing concerns over its data collection practices by introducing a new tool that allows users to see and control the data that the social network gathers from their browsing habits on other websites and apps.
According to the company, the tool, which is being rolled out in Ireland, South Korea, and Spain, will enable users to view and manage the data that apps and websites share with Facebook, known as 'Off-Facebook Activity.'
As part of the new tool, users will be able to clear their Off-Facebook Activity, which will remove their information from the data that apps and websites choose to send to Facebook.
Facebook earns a significant portion of its revenue from advertisements, and the company's ability to target potential customers is crucial to its business model. However, any change in lowering the effectiveness of ad targeting could hurt the company's revenue.
Despite this, Facebook has agreed to a record-setting Ksh. 500 billion privacy settlement with the U.S. Federal Trade Commission, highlighting the growing scrutiny of the company's data collection practices.
Atlantic Equities analyst James Cordwell noted that the new tool may not have a significant impact on Facebook's business, saying, 'I think the impact from this new functionality will also be manageable for the business.'
However, Cordwell also raised concerns about the effectiveness of the tool, stating, 'The question remains as to how many consumers will actually bother to use this functionality, especially given it will require navigating into the app's Settings area.'
