Facebook Privacy Issues: Changing Society or Just a Smart Business Move?

Published by Ryan Healy on January 17th, 2010 in Work | 6 Comments

Last week, following the recent changes in privacy settings, Facebook founder Mark Zuckerberg said that if he were to create Facebook again today, user information would be public by default.

Personally, I think Facebooks recent shift in privacy settings was a smart move. For the social web to truly be “social,” data must be freely available to everyone.

Twitter understood this when developing their service and we understood it when deciding to make Brazen Careerist open. Also, as services like Twitter, Blogging and Brazen Careerist have become more and more prevalent, people seem to be less concerned with online privacy. I’m conscious of what I say online, and I have nothing to hide, so privacy is a non factor for me.

But the real reason I think it’s a smart move for Facebook is because opening the site will improve their bottom line. When you open everything up, people become much more aware of what they post and what they don’t post online. And when 350 million people are consciously monitoring what they post, the number of beer bonging photos and mentions of last night’s illegal escapades will go way down. When these things go way down, advertising rates go way up..

However, this post by Greg Tracy made me think of the issue in a whole new way. Tracy argues that privacy absolutely matters for Facebook, and Twitter and blogging are terrible data points. They are poor data points because Facebook is different. Facebook is supposed to be an online extension of your everyday offline life. Offline, you have private conversations with your neighbors on the sidewalk or with your coworkers at the water cooler. These conversations would never be shouted for a neighbor down the street to hear you or for your boss in the corner office to find out what's going on.

Tracy goes on to say that people aren’t changing and Facebook will not make them change. Facebook is merely a new medium to do the same things we have always done. Twitter and Blogging are very different. Twitter and Blogging are not supposed to be an extension of your offline life. They are meant for public consumption, just like newspapers, magazines and television are meant for public consumption.

Tracy makes an excellent point. Facebook could be making a huge mistake by following the lead of Twitter and other new, open sites. But, it could also very well be that they recognize there is no money in being an extension of offline life, and they are making the smartest business decision they can by downplaying privacy.

If Facebook truly wants to be the place where you live your life online the same way you live your life offline, they are making a mistake by downplaying privacy issues. You can change the medium, but you can’t change how people fundamentally behave.

However, if Facebook believes that they are not merely a new medium to do what you have always done, but instead they are a new media tool designed to give people a brand new way to behave and communicate, then Facebook is on the right track.

I’m sure Facebook will go whatever route can make them the most money, but whichever way they decide to go, they’re going to piss some people off, and they’re going to leave the door wide open for a new service to come along and fill in where Facebook does not.

What do you guys think? Is privacy a major issue for you? Do you agree with Zuckerberg?