Meta Platforms Inc (NASDAQ: FB) is facing more controversy since Frances Haugen, a whistleblower, released internal documents to the Securities and Exchange Commission and the media. Andy Parker, a parent to a deceased journalist, has filed a complaint against the company for failing to remove videos of his daughter Alison’s murder. Since Haugen came forward, Parker is more convinced that the company can get rid of any violent content on the platform but chooses not to as they profit from such videos.
Meanwhile, Haugen appeared before E.U lawmakers to give her testimony on Meta. The testimony comes at a good time as the E.U makes laws to regulate social media platforms. So far, they have come up with the Digital Services Act (DSA) and the Digital Markets Act.
The E.U created the DSA to force companies to pay attention to the harmful content on their platforms and eliminate misinformation. The Digital Markets Act, on the other hand, is to prevent giants like Meta and Google from stopping other new platforms from emerging.
Meta researched compulsive social media use
Moreover, the WSG has released another report in the Facebook Files series that details a survey done by Meta on compulsive use of their site. Facebook Files is based on the internal documents Haugen leaked. The study shows that 1 in 8 Facebook users have compulsive Facebook use that affects their relationships and work-life.
According to Meta’s vice president of research, Pratiti Raychoudhury, the WSJ did not correctly represent the study. She adds that there is a difference between problematic use and addiction and that Meta works to help its users have a great experience.
Critics claim Meta’s rebrand is a distraction
Shortly after Haugen released Meta’s internal files, the company announced that it would change its name from Facebook to Meta and its venture into the metaverse. Critics have stated that the rebrand was a distraction from the company’s controversy. Others, including British lawmakers and Haugen, have added that the company should focus on its current platforms instead of creating new ones.
Apple Inc’s (NASDAQ: AAPL) new tracking policy has also affected Meta as social media companies will lose about $10 billion in revenue. Meta has accused Apple of making a policy that would favor its business.