CEOs Mark Zuckerberg and Tim Cook are in a war with one another. The Facebook and Apple CEOs respectively, are fighting over Facebook’s alleged data sharing scandal.
The feud began last week when Cook admitted that Apple would have made a lot of money by monetizing user data. However, he said they decided against that because privacy is a human right. He then stated that Facebook should not be collecting as much data from the users as it is currently.
April 2nd saw the next shot fired in the battle between the companies. Zuckerberg publically stated that Cook’s take on the scandal was not in line with the truth at all.
Facebook Relies on Different Model than Apple, Zuckerberg says
The Facebook CEO also brought up key differences between Apple’s business model and his own. Apple relies on selling their physical products. Meanwhile, Facebook relies on targeting users with ads that match up to their interests which allows the site to remain free.
The primary reason most media is based on an ad-supported model, Zuckerberg says, is that it’s expensive to connect the world. If it was a paid system, not everyone could afford to have this system.
While what Zuckerberg said is true to an extent, the Cambridge Analytica scandal is perhaps the largest in Facebook’s history. While certain companies such as Facebook and Google make money by learning about their users, Apple earns money by overcharging for its devices. This format helps the company not interfere with user privacy.
The social media site gleaned private data for more than 50 million users with a fake personality quiz.
The fight between Zuckerberg and Cook is important mainly because of Cook’s call for regulation. Should this come to pass, it could impact the earning potential of Facebook.
The Cambridge Analytica scandal has pressed down even more on the already present weight focused on the social site. The social networking giant was already under the spotlight over the alleged use of their site by Russia to impact the presidential election. This newest scandal has hit Facebooks’s stock as well. Since the beginning of this scandal on March 16, the stock is down 13%.
The market value of Facebook has dropped over $70 billion. Even Zuckerberg’s net worth has gone down more than $10 billion. Not only is the company facing the scandal, but Zuckerberg is also expected to testify on Capitol Hill after being repeatedly called to do so by officials. They are also facing a #DeleteFacebook protest.