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Apple’s Cold War Against Facebook or Why Facebook Will Stop Working This Year
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Apple’s Cold War Against Facebook or Why Facebook Will Stop Working This Year

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WASHINGTON – February 6, 2019

Apple's Tim Cook has decided to further spoil the life of Facebook, which is already under the yoke of many scandals. Apple has withdrawn issued Facebook developer certificates to work in its iOS operating system so that FB employees were unable to open working applications on their iPhones.

This news and the slight hit to FB stock that followed were soon followed by a solid earnings report, which sent FB shares higher in after-hours trading.

This was a blow to thousands of the company’s employees--the non-use of the internal iOS app after it was caught running a data collection app. Specifically, FB used the Research app to track underage customers.

Apple's working policy doesn't allow other companies to collect data. Moreover, Apple says that it doesn't collect data of its users at all.

theeconomyclub.com

According to an initial report from The Verge, the revocation of the FB developer certificate - in retaliation for the abuse of the license--bribing children to transfer all of their personal data - included closing all of Facebook's internal apps.

In addition, Apple has removed Facebook’s ability to distribute internal iOS apps, starting with earlier versions of the Facebook app.

Thus, earlier versions of Facebook, Instagram, Messenger and other "dogfood" (beta) applications stopped working, as well as other employees’ apps, such as one for transportation. It was later said that Facebook viewed this as a critical issue within the company, as the affected apps simply no longer run on employees' phones.

Apple’s Cold War Against Facebook or Why Facebook Will Stop Working This Year

Previous reports of Facebook activity also say that the social network already has a critical disease.

Over the past six months, Facebook stocks have fallen by more than a third and despite some upswing after Christmas, it's probably just a prelude to an even larger collapse.

The large-scale FB shares collapse began on July 26, 2018, after a not too optimistic quarterly report.

Endless scandals formed a stable negative background around the company. Over the past couple of years, Facebook has faced a wave of accusations of political bias, unpunished Russian hackers and trolls before the 2016 Presidential Election and 2018 Midterm Elections, cybersecurity violations, leaks of user data, and targeted trade.

The founder and head of the company Mark Zuckerberg has had to make numerous apologies, including to Congress and to EU representatives in Brussels.

Zuckerberg promised to solve security and censorship issues with two things: more advanced artificial intelligence and hiring a huge staff of moderators.

In reality, judging by the documentary The Cleaners filmed last May by CBS News journalists, these most praised moderators are hired through outsourcing in the third world, for example, in the Philippines.

To repeat, people don't have any experience or competence to do the work; usually they don't check the information due to process ignorance. At the same time, they have to focus on complex, controversial, multi-page bureaucratic instructions in formats such as PowerPoint or Excel, written in a language that is not always familiar to them.

buzzsumo.com

Moderators who are hired from these countries are not only paid little but also are not provided medical care, despite the psychologically difficult work that requires viewing up to 25,000 images or videos a day, filtering out all sorts of scenes of hatred, child pornography, rape, murder and torture. As a result, the suicide rate among Filipino FB workers is very high.

As for technological innovations, Facebook has not shown any convincing success in this area in recent years. Although it is reported that robots on FB have learned to block up to 96% of images and videos containing nudity, image recognition is one of the easiest tasks for robots, and such material is downloaded and remains so popular that from September 2017 to September 2018 the number of views of erotic and porn content on the platform has doubled.

Although most analysts surveyed by Bloomberg still rank Facebook stocks as "Buy," this is largely at odds with the observed state of the company.

The Facebook ecosystem is too heavily poisoned by negative and illegal content, and yet so chaotic that moderators or robots can hardly clear these.

With users fleeing Facebook, advertisers place their ads on other platforms. In many countries, FB’s ability to collect and sell user data has been severely limited over the past year. The last in this series was Germany, which last week banned the transfer of user data to third parties.

According to Statcounter, Facebook's stocks of the global social media market fell from 75.5% in December 2017 to 66.3% in December 2018. In the US, the fall is even stronger -- from 76% to 52%. The remaining users have reduced their activity. The general trend, to put it mildly, is frightening:

  • 18% of the 50 largest American advertisers said they were cutting their ad purchases on FB. This means a loss of at least 3% of the market.

In the US, the company has been the subject of investigations by a number of government agencies, including the Federal Trade Commission (FTC), the Department of Justice, the Securities and Exchange Commission (SEC), and the Federal Bureau of Investigation (FBI). A similar situation is observed in the European Union. Even the UN brought charges against Facebook, saying that the company played a "crucial role" in the genocide of the Rohingya people in Myanmar.

Apple’s Cold War Against Facebook or Why Facebook Will Stop Working This Year

Facebook’s top managers are leaving the company in noticeable numbers, and some investors want Zuckerberg to resign from the post of General Director.

All this will inevitably affect the company's profits in the short term, and in the long term Facebook may well repeat the fate the Enron Energy Corporation that went bankrupt in 2001, which in the 1990s was considered the "most innovative company in America" and was the star of American exchanges, but died because of problems in internal management (inefficiency, falsification of statistics and other deception of investors).

We've been writing about systemic FB problems for a long time, and the whole wave of negative publications in the media shows that we're not the only ones who notice them.

Only a very brave investor can now hold Facebook stocks. Given the fact that the company is huge and very vulnerable, we can expect that it will pounce on large short-sellers, and if politicians seriously connect To Facebook, the shares may collapse much faster than they were growing until last year.

And now, in a long series of negative news, there’re two more pieces.

First, it turns out that Facebook, with the help of a special application, bribed users (mainly minors) to supply FB with their personal data, including information related to the use of services from competing companies.

No, it's not about the data of more than 150 companies that have previously faced the problem of data leakage through Facebook. Here it's about something else.

More than 150 companies previously faced the problem of data leakage through FB, but this is something else. This information was used to fine-tune advertising and combat rivals.

After such revelations, Facebook stocks predictably began to fall, but the situation was saved by the quarterly report, which showed a good level of income at the end of 2018.

Apple’s Cold War Against Facebook or Why Facebook Will Stop Working This Year

Secondly, because Facebook actions violated Apple’s affiliate rules, the applets revoked FB’s corporate dev-certificates that allowed its employees to develop applications for iOS and download applications without using the Apple Store.

Apple’s Cold War Against Facebook or Why Facebook Will Stop Working This Year

According to Business Insider reports, this has led to chaos in FB headquarters as thousands of employees simply are unable to access their necessary enterprise iOS applications on their iPhone.

Fortunately for Mark Zuckerberg, ordinary iPhone users can still download and use the main Facebook app. The problems that Apple created for Facebook, however, are quite significant.

Instead of helping "colleagues in American high-tech," Apple decided that finishing off Facebook would be good PR. One must admit that it worked.

At this rate, Facebook will remain without friends, partners and so on. Sooner or later it will be hard to do successful PR policy.

Apple’s Cold War Against Facebook or Why Facebook Will Stop Working This Year

Facebook is starting to look like a bleeding animal: The company is huge, but the prospects are currently bad. Short sellers can still make good money on it, but investors most likely cannot anymore.

Author: USA Really