Will Facebook Fail Over Privacy Issues?

No, I doubt it. That’s the short answer. Yes, nearly a million people have “quit” Facenook recently with the new privacy rules and the advent of the “I like it” button being added to the service. But they have over 400 million active users worldwide. Losing a few million, and likely they will, is just not enough to worry about at that size. A few hundred thousand is a blip on the “churn rate” for a month. That’s it. If that even.

One group of aspiring entrepreneurs has raised over $100K to build a more “private” alternative to Facebook and will likely see some business if they can execute. Diaspora says they’ll launch in late summer or early fall. This is the democracy of the Web at work – if you don’t like something, there’s a way to build the alternative.

If reports start to come out that 10, then 20, then 50 million are leaving, I suspect they’ll start to be concerned. But the fact is, we’ve heard these privacy and usage fear stories before. As the Internet began to see popularity in the mid-90′s and the .com bubble started to expand bigger than a Hubba Bubba bubble gum bubble, news stories ran constantly about all kinds of dangers; fraud, luring, lurking. We warned against so many different societal threats. Today, we’ve all learned to delete those emails from some poor sod in Upper Rubber Boot Africa who needs to get to their dead uncle’s millions and only you can help…well, hopefully you’ve figured that out.

Here we are, 15 or so years later. The Web keeps growing and more people keep signing on. This I think, says at a broader social level – people want to connect, create and communicate. Despite the dangers.

Chat rooms, IM services, newsgroups, forums…those early “Web 2.0″ tools, still exist and are as popular as ever. Privacy commissioners may write letters of concern to Facebook…but people still log on. Daily. By the many millions.

If governments step in in a larger way, Facebook may be forced to make changes. But at the end of the day, Facebook has also enabled people to clamp down their profiles. It’s not easy, but it’s doable. Like many things in life, we sometimes have to take responsibility for our own actions and work at things.

Just like the Web is not going away, quite the opposite, so Facebook isn’t going away. Services like Diaspora will come into being, people will learn to better manage their privacy. These are new social rules we’re writing as a society. In the meantime, Facebook is not about to collapse.

Here’s a great 2 min video by Huffington Post on managing your privacy settings.

(Author: G. Crouch, MD)