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Can Facebook be broken up? What you need to know

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Can Facebook be broken up? What you need to know

Facebook CEO Mark Zuckerberg wields so much power that even one of the social network's co-founders thinks it's both "unprecedented" and "un-American."

Chris Hughes, who co-founded Facebook with Zuckerberg while they were students at Harvard, called for the social network to be broken up in an op-ed published Thursday by The New York Times. "I'm angry that his focus on growth led him to sacrifice security and civility for clicks," Hughes wrote, referring to Facebook's boss and major shareholder. "I'm disappointed in myself and the early Facebook team for not thinking more about how the News Feed algorithm could change our culture, influence elections and empower nationalist leaders."

Facebook's rapid growth has been fueled by acquisitions, including Instagram and WhatsApp, a messaging service. Critics and experts say Facebook simply purchased its competition, rather than innovating to meet the challenges they posed.

"Their whole business model is to identify potential threats and then buy them or beat them in some way," said Stephen Diamond, an associate professor of law at Santa Clara University School of Law.

And Facebook has been called out for not doing enough to combat election meddling, misinformation and hate speech. Its enormous power, critics argue, needs to be kept in check. Facebook doesn't want to spin off Instagram and WhatsApp.

Here's what you need to know:

Who wants Facebook broken up? Why?

Calls to break up Facebook aren't new. But it is startling to hear one of the company's co-founders call for such an extreme measure. Hughes argues that Zuckerberg holds so much power that even the company's board of directors can't keep him accountable. Zuckerberg controls around 60 percent of Facebook's voting shares, which means the board technically can't fire him even if he messes up.

Hughes isn't alone. Advocacy groups, including the Electronic Privacy Information Center, Color of Change and Common Sense Media, have previously asked the Federal Trade Commission, the agency that enforces antitrust law, to make Instagram and WhatsApp separate companies. A split would also make it easier for other social media companies to compete with Facebook, the organizations argue.

In addition, a group called Freedom from Facebook has called on the FTC to force Facebook to spin off its Messenger service too.

Sen. Elizabeth Warren, a Democrat from Massachusetts who's also a presidential candidate, is among the lawmakers who want to break up Facebook, as well as other tech giants, including Google and Amazon.

How would Facebook be broken up?

One way to break up Facebook would be for the federal government to file a lawsuit against the company, arguing it stifles competition. That could prompt a negotiation between the parties that could lead to Facebook agreeing to make itself smaller.

Another alternative would be for Congress to pass a law covering tech monopolies. Warren has proposed such a law, which would require tech platforms that take in $25 billion or more in sales to "structurally separate" their products. Amazon, for example, would have to spin off its house brand Amazon Basics. Warren said that if she won the presidential election her administration would also appoint regulators to unwind the mergers of Instagram and WhatsApp from Facebook.

What does Facebook think about the idea?

Facebook has pushed back, arguing that breaking up the company wouldn't hold the social network more accountable for its actions. Instead, Facebook has called for more internet regulation around harmful content, election integrity, privacy and data portability.

"Accountability of tech companies can only be achieved through the painstaking introduction of new rules for the internet," Nick Clegg, Facebook's vice president of global affairs and communications, said in a statement Thursday. The social network also said that having Instagram and WhatsApp under Facebook helps them fight spam, election meddling and crime. Facebook says it has plenty of competition, pointing to YouTube, Snapchat, iMessage and WeChat, among others.

Clegg touched on all those points in a Saturday editorial in The New York Times.

Have tech companies been broken up in the past?

Yes, but it's unusual. In 1974, the US Department of Justice filed an antitrust lawsuit against AT&T but the matter wasn't settled until eight years later. The telephone company was required to spin off two-thirds of its assets into separate companies, according to a 1982 article from The Washington Post. The government has also tried to break up Microsoft and in 2000 a US federal judge ordered that the tech giant split into two companies. Microsoft appealed and the decision was reversed.

What would this mean for users of Facebook?

Facebook is trying to integrate its messaging services so users of Facebook, Instagram and WhatsApp can send messages to one another without switching apps. Splitting up the companies might prevent that from happening.

Those who want the government to break Facebook up argue the move would fuel more competition among social media companies, which could mean more options for consumers. About 2.7 billion people use Facebook, Instagram, WhatsApp or Messenger every month.

Diamond said that breaking up Facebook could also lead to the company stepping up its privacy efforts to match its social media competitors.

What are the chances this happens?

The FTC declined to comment on whether it's looking to break up Facebook. But if history is any indication, it would be a rare move.

"I doubt there is sufficient political momentum to break up Facebook," Diamond said. "I'm skeptical, even though I think there might be good reasons to do it."

Originally published May 10, 5:40 a.m. PT.
Update, May 11: Adds mention of Facebook VP Nick Clegg's Saturday editorial in the Times.

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Can Facebook be broken up? What you need to know

Can Facebook be broken up? What you need to know

Facebook CEO Mark Zuckerberg wields so much power that even one of the social network's co-founders thinks it's both "unprecedented" and "un-American."

Chris Hughes, who co-founded Facebook with Zuckerberg while they were students at Harvard, called for the social network to be broken up in an op-ed published Thursday by The New York Times. "I'm angry that his focus on growth led him to sacrifice security and civility for clicks," Hughes wrote, referring to Facebook's boss and major shareholder. "I'm disappointed in myself and the early Facebook team for not thinking more about how the News Feed algorithm could change our culture, influence elections and empower nationalist leaders."

Facebook's rapid growth has been fueled by acquisitions, including Instagram and WhatsApp, a messaging service. Critics and experts say Facebook simply purchased its competition, rather than innovating to meet the challenges they posed.

"Their whole business model is to identify potential threats and then buy them or beat them in some way," said Stephen Diamond, an associate professor of law at Santa Clara University School of Law.

And Facebook has been called out for not doing enough to combat election meddling, misinformation and hate speech. Its enormous power, critics argue, needs to be kept in check. Facebook doesn't want to spin off Instagram and WhatsApp.

Here's what you need to know:

Who wants Facebook broken up? Why?

Calls to break up Facebook aren't new. But it is startling to hear one of the company's co-founders call for such an extreme measure. Hughes argues that Zuckerberg holds so much power that even the company's board of directors can't keep him accountable. Zuckerberg controls around 60 percent of Facebook's voting shares, which means the board technically can't fire him even if he messes up.

Hughes isn't alone. Advocacy groups, including the Electronic Privacy Information Center, Color of Change and Common Sense Media, have previously asked the Federal Trade Commission, the agency that enforces antitrust law, to make Instagram and WhatsApp separate companies. A split would also make it easier for other social media companies to compete with Facebook, the organizations argue.

In addition, a group called Freedom from Facebook has called on the FTC to force Facebook to spin off its Messenger service too.

Sen. Elizabeth Warren, a Democrat from Massachusetts who's also a presidential candidate, is among the lawmakers who want to break up Facebook, as well as other tech giants, including Google and Amazon.

How would Facebook be broken up?

One way to break up Facebook would be for the federal government to file a lawsuit against the company, arguing it stifles competition. That could prompt a negotiation between the parties that could lead to Facebook agreeing to make itself smaller.

Another alternative would be for Congress to pass a law covering tech monopolies. Warren has proposed such a law, which would require tech platforms that take in $25 billion or more in sales to "structurally separate" their products. Amazon, for example, would have to spin off its house brand Amazon Basics. Warren said that if she won the presidential election her administration would also appoint regulators to unwind the mergers of Instagram and WhatsApp from Facebook.

What does Facebook think about the idea?

Facebook has pushed back, arguing that breaking up the company wouldn't hold the social network more accountable for its actions. Instead, Facebook has called for more internet regulation around harmful content, election integrity, privacy and data portability.

"Accountability of tech companies can only be achieved through the painstaking introduction of new rules for the internet," Nick Clegg, Facebook's vice president of global affairs and communications, said in a statement Thursday. The social network also said that having Instagram and WhatsApp under Facebook helps them fight spam, election meddling and crime. Facebook says it has plenty of competition, pointing to YouTube, Snapchat, iMessage and WeChat, among others.

Clegg touched on all those points in a Saturday editorial in The New York Times.

Have tech companies been broken up in the past?

Yes, but it's unusual. In 1974, the US Department of Justice filed an antitrust lawsuit against AT&T but the matter wasn't settled until eight years later. The telephone company was required to spin off two-thirds of its assets into separate companies, according to a 1982 article from The Washington Post. The government has also tried to break up Microsoft and in 2000 a US federal judge ordered that the tech giant split into two companies. Microsoft appealed and the decision was reversed.

What would this mean for users of Facebook?

Facebook is trying to integrate its messaging services so users of Facebook, Instagram and WhatsApp can send messages to one another without switching apps. Splitting up the companies might prevent that from happening.

Those who want the government to break Facebook up argue the move would fuel more competition among social media companies, which could mean more options for consumers. About 2.7 billion people use Facebook, Instagram, WhatsApp or Messenger every month.

Diamond said that breaking up Facebook could also lead to the company stepping up its privacy efforts to match its social media competitors.

What are the chances this happens?

The FTC declined to comment on whether it's looking to break up Facebook. But if history is any indication, it would be a rare move.

"I doubt there is sufficient political momentum to break up Facebook," Diamond said. "I'm skeptical, even though I think there might be good reasons to do it."

Originally published May 10, 5:40 a.m. PT.
Update, May 11: Adds mention of Facebook VP Nick Clegg's Saturday editorial in the Times.

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Nebraska Police Obtained Facebook Messages About Teen's Alleged Abortion

Nebraska Police Obtained Facebook Messages About Teen's Alleged Abortion

Facebook parent Meta provided Nebraska police with messages between a teenager accused of having an illegal abortion and her mother after the social media giant was served with a search warrant, court documents show.

Police in Norfolk, Nebraska, started the investigation in April before the US Supreme Court overturned Roe v. Wade, the landmark 1973 decision that established abortion rights. The Supreme Court's decision has sparked concerns about how online data could be used as criminal evidence against people seeking abortions.

The Lincoln Journal Star earlier reported that 41-year-old Jessica Burgess is facing criminal charges for allegedly helping her daughter, who was 17 years old at the time, abort, burn and bury her fetus. The mother pleaded not guilty, and will face a trial in Madison County District Court. (CNET isn't identifying the daughter, who was a minor at the time of the alleged abortion.)

The teenager told a Norfolk Police detective that she miscarried and gave birth to a stillborn, court documents say. Nebraska bars most abortions 20 weeks after fertilization and police determined from the teen's medical records that she was more than 23 weeks pregnant at the time.

When the detective interviewed the teenager about the timing of the miscarriage, the teen scrolled through messages on her Facebook Messenger account from April, when she was trying to get her mother's attention. The detective then identified the mother and daughter's Facebook accounts.

"I know from prior training and experience, and conversations with other seasoned criminal investigators, that people involved in criminal activity frequently have conversations regarding their criminal activities through various social networking sites, i.e. Facebook," Ben McBride, a detective for the Norfolk Police Division, said in an affidavit supporting the search warrant to Meta. The document states the detective believes the premises of Meta "are being used for the purpose of securing or keeping evidence related to Prohibited Acts with Skeletal Remains."

The detective outlined the Facebook data he was seeking related to the investigation, including photos and private messages. The police were then able to seize more than 250,000 kilobytes of data tied to the teenager's Facebook account, including account information, images, videos and messages, and more than 50,000 KB of data associated with Jessica Burgess' account, according to court documents. 

The Facebook messages suggested that Jessica Burgess had given her daughter instructions about how to take abortion pills after obtaining them, the Lincoln Journal Star reported. After police obtained the Facebook messages, Jessica Burgess faced two more felony charges for allegedly performing or attempting an abortion on a pregnancy at more than 20 weeks and performing an abortion as a non-licensed doctor, The Lincoln Journal Star reported. Burgess and her daughter faced other charges in June, including removing, concealing or abandoning a dead human body.

Meta didn't answer questions about how many of these types of requests it's received.

Meta spokesman Andy Stone told Forbes that he couldn't immediately confirm any details about the incident. He tweeted late Tuesday that the company received the warrants in June before the Supreme Court overturned Roe V. Wade.

"The warrants concerned charges related to a criminal investigation and court documents indicate that police at the time were investigating the case of a stillborn baby who was burned and buried, not a decision to have an abortion," Stone tweeted.

Motherboard earlier obtained documents about the case that included the messages between the mother and daughter.

Neither the mother nor the daughter immediately responded to request for comment.

The police and Meta's actions have sparked more scrutiny over the social network, which has been plagued with data privacy scandals. On Tuesday, some Twitter users were urging women to #DeleteFacebook and the hashtag was trending.

Civil rights advocacy group Color of Change also raised concerns that "anti-abortion extremists" would use social media to "coordinate the harassment and bounty hunting of people seeking abortions."

Messages on Facebook Messenger aren't encrypted by default, which would prevent Facebook or anyone else from viewing the messages. Facebook Messenger users can send encrypted messaged by turning on a feature known as secret conversations.

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Facebook Reportedly Collects Data About Abortion Seekers

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Facebook Reportedly Collects Data About Abortion Seekers

What's happening

An collaborative investigation between two journalism nonprofits finds that Facebook is collecting personal data about abortion seekers.

Why it matters

Lawmakers and privacy experts are raising concerns about how technology can be abused, after a leaked draft opinion showed the Supreme Court planned to overturn federal abortion rights.

Facebook is reportedly collecting data about people who visit the websites of so-called crisis pregnancy centers, raising concerns from privacy experts that information about abortion seekers could be abused.

A collaborative investigation between journalism nonprofits The Markup and Reveal, which is part of The Center for Investigative Reporting, analyzed nearly 2,500 crisis pregnancy center websites and found that at least 294 of these sites shared visitor information with Facebook. Some of the sensitive personal data included information about whether a person is considering abortion or trying to obtain emergency contraceptives or a pregnancy test.

Concerns about how such data could be used to identify abortion seekers have increased after Politico published a story in early May about a leaked Supreme Court draft opinion that suggests the court will strike down the landmark Roe v. Wade decision. In late May, US lawmakers urged Google to stop collecting and retaining user location data because it could be tapped to identify people seeking abortions. The Supreme Court decision has not been released yet, but it would strike down national constitutional protection of abortion rights. Individual states would then decide whether to restrict or ban abortion.

Reveal and The Markup reported that it isn't clear how Facebook uses data about abortion seekers.

But privacy experts say that in states where abortion is outlawed, people who condemn the procedure could use such data as evidence against abortion seekers. They say the crisis pregnancy centers, which exist to persuade people against having abortions, could also use the data to target advertising or misinformation at people to deter them from opting for the procedure.

Dale Hogan, a spokesperson for Facebook parent company Meta, told the news outlets that the company's system is "designed to filter out potentially sensitive data" and that it's against Facebook's rules for apps and websites to send "sensitive information about people" through the company's business tools. Hogan sent the same statement to CNET.

Reveal and The Markup said it's unknown whether Facebook's filters caught the sensitive data. Privacy experts suggested that ways of preventing misuse of the data include strengthening the social media platform's filters or getting rid of a tool called the Meta Pixel that allows websites to track visitor activity.

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Encrypted messages don't always stay private. Here's what that means for you

Encrypted messages don't always stay private. Here's what that means for you

As a group of alleged conspirators recently learned, encrypted messaging isn't a guarantee that your private conversations will stay between you and the recipient. The FBI arrested six men on Thursday for allegedly plotting to kidnap Michigan Gov. Gretchen Whitmer. How did the feds get the information they needed? They read the group's encrypted conversations. 

To be clear, accessing the communications wasn't a highly technical effort. The FBI had a confidential informant who participated in the group message threads in which much of the conspiracy was laid out, according to a criminal complaint. That kept the FBI in the loop even when the group changed messaging apps to avoid detection. 

"Because the group still included [the informant], the FBI has maintained the ability to consensually monitor the chat communications," FBI special agent Richard J. Trask II said in the complaint.

The incident underscores a basic fact about encrypted messaging apps, like Signal, Telegram and WhatsApp. While they all offer a layer of privacy, there are plenty of ways for someone to access your messages from these services. 

That's good news and bad news. On the bright side, it means criminals plotting violence can't rely completely on encrypted messaging services to hide their plans from the police. While law enforcement has warned that encryption threatens to make their investigations into the worst criminals "go dark," this case is one example of how investigators can continue to read messages sent with encrypted services.

On the other hand, it means regular users who want to protect their data from hackers, creeps and foreign governments need to rethink what encrypted messaging really does for them. It isn't a magic wand. Here's what you should know about what encryption does -- and doesn't do -- to protect your privacy.

How does encrypted messaging work?

It's OK, most people don't have a handle on just what encrypted messaging apps like Signal, Telegram and Facebook-owned WhatsApp do. They look and act like regular text messaging tools. But behind the scenes, the services scramble up your messages as they travel across cellular communications systems and the internet to get to the intended recipient's phone. 

That means no one involved in sending the message -- including the encrypted messaging service -- can read your messages. Regular SMS messaging is sent in plaintext and doesn't have this layer of protection, so your SMS messages are vulnerable to interception at multiple points as they travel from your phone to the recipient's device.

Is my phone encrypted, too?

If you use an iPhone, the data on your phone is encrypted when the device is locked. On Android phones, users have to enable disk encryption themselves. Device encryption will protect your messages as long as the phone is locked.

Apple describes this form of encryption as essential to users' privacy. For one thing, it protects all the personal data on your phone if it gets stolen. Think private messages and photos, as well as access to your email account and financial information.

Like encrypted messaging, device encryption has been a sore subject with law enforcement. The FBI tried to get a court order in 2016 to force Apple to help it access encrypted messages on an iPhone used by an extremist shooter. After Apple refused, the agency was eventually able to access the data on the phone with another technique.

How can someone get my encrypted messages?

As the Michigan case shows, anyone you send a message can share it with a wider circle of people, regardless of whether it's sent on an encrypted service. The same goes for anyone who has the ability to unlock your phone, which disables device encryption. If you don't lock your device at all, anyone who gets your phone can access your messages.

Then there's hacking, which is used by law enforcement, as well as criminals and foreign governments, to target someone's phone with malicious software. Once the device is compromised, the malware can read messages on the device just like someone looking over your shoulder to watch you type. These tools are sophisticated, can be very expensive, and require someone to target you specifically. 

Another form of malware that can get your communications is called stalkerware. That's phone monitoring software that many people admit to using to spy on their partners or exes, and it usually requires the person to have access to your phone. There are steps you can take if you're worried your device has stalkerware.

Finally, there are your backups. Data on your cloud accounts might not be encrypted, and anyone who has the password could access your backed-up messages there. Some stalkerware works by accessing your phone's cloud backup. That's a great argument for using a unique, hard-to-guess password to protect your cloud accounts, and using a password manager.

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How to Claim Money from Capital One's $190 Million Data Breach Settlement

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How to Claim Money from Capital One's $190 Million Data Breach Settlement

A huge data breach  in March 2019 exposed the personal information of more than 100 million Capital One customers. As a result, the financial powerhouse has agreed to a proposed $190 million settlement that is set to receive final approval next week.

The plaintiffs in a class action suit claimed that a hacker couldn't have accessed Capital One's Amazon-hosted cloud computing systems if adequate protections were in place. Capital One "knew of the particular security vulnerabilities that permitted the data breach, but still failed" to protect customers, according to their complaint, putting millions at risk of fraud and identity theft.

Capital One did not respond to a request for comment. The company denied any wrongdoing but, in a December 2021 statement, said it was agreeing to the $190 million payout "in the interest of avoiding the time, expense and uncertainty of continued litigation."

The US District Court for the Eastern District of Virginia granted preliminary approval for the deal on Jan. 31, 2022. At that time, prospective class members had until Aug. 22 to file a claim.

But that deadline has now been extended to the end of September.

Here's what you need to know about the Capital One data breach settlement, including how to find out if you're eligible for a payout, how much money you could receive and the new deadline for filing a claim.

For more on class-action cases, find out if you're eligible for money from T-Mobile's $350 million data breach case, Apple's $14.8 million iCloud storage settlement or Facebook's $90 million data-tracking payout.

What happened in the 2019 Capital One data breach?

In one of the largest financial security breaches in US history, a hacker accessed the personal information of approximately 106 million Capital One customers and applicants in March 2019.

The massive hack went undiscovered for approximately four months before Capital One made it public in July 2019.  

Seattle engineer Paige Thompson, a former Amazon cloud employee, was ultimately arrested in connection with the case. In June, she was convicted of wire fraud and unauthorized access and damages to a protected computer. 

Capital One said Thompson illegally gained access to personal information related to credit card applications dating between 2005 and early 2019 for both personal and small-business accounts. 

"With some of her illegal access, she planted cryptocurrency mining software on new servers with the income from the mining going to her online wallet," the Department of Justice said in a release, adding that Thompson used an alias to brag on social media and online forums about masterminding the attack.

Thompson is scheduled for sentencing on Sept. 15.

In addition to the $180 million class action lawsuit, Capital One was fined $80 million and agreed to enhance its cloud security standards. 

Capital One said it immediately fixed its servers' vulnerability to forged requests when it became aware of the breach. 

What was exposed in the Capital One hack?

Capital One said about 140,000 Social Security numbers and 80,000 US bank account numbers were exposed, as were birth dates, addresses, phone numbers, credit balances, transactions and credit scores.

An additional 1 million Canadian credit card customers and applicants had their Social Insurance Numbers stolen.

No login information or credit card account numbers were obtained by Thomas, the bank said. 

Who is eligible for payment from the Capital One settlement? 

Some 98 million applicants and cardholders are eligible to file a valid claim, according to Capital One, which said it sent letters and emails to members whose Social Security numbers or bank account numbers were exposed in the hack. 

If you think you're eligible but did not receive a notice, contact the settlement administrator at 855-604-1811 for assistance.

How much can I receive from the Capital One settlement?

About 140,000 Social Security numbers and 80,000 Capital One account numbers were exposed, along with birth dates, addresses, phone numbers, credit balances, bank transactions and credit scores.

Heather Shimmin/Getty Images

Class members can collect up to $25,000 in cash for lost time and out-of-pocket expenditures relating to the breach, including unreimbursed fraud charges, money spent preventing identity theft and fees to professional data security services.

You can claim up to 15 hours of lost time spent addressing the issue, at a rate of at least $25 per hour. 

The settlement also provides three years of free identity protection services through the Pango Group, including identity monitoring, lost wallet protection, security freeze capabilities, dark-web monitoring, free account restoration, and $1 million in identity theft and fraud insurance. 

How do I file a claim in the Capital One data breach case?

You can file online at the class action settlement website. You'll need the Unique ID and PIN printed on the notice you received from Capital One in the mail or via email, along with detailed documentation, including receipts, bank statements, voided checks and invoices. (If you lost your notice or never received one, contact the settlement administrator at 855-604-1811.)

You can also print out a paper claim form and mail it in, along with any supporting documentation, to the settlement administrator at:

Capital One Data Breach
Settlement Administrator
P.O. Box 4518
Portland, OR 97208–4518

When is the deadline to file a claim?

The original deadline to file a valid claim in the Capital One case was Aug. 22 but that deadline has been extended to Sept. 30, 2022.

The deadline for exclusion from the settlement in order to retain the right to pursue separate legal action expired on July 7. 

When will class members receive their payments?

A judge has given preliminary approval for the $180 million settlement. A final approval hearing was initially slated for Aug. 19 but it was rescheduled to Sept. 8.

Assuming the settlement receives final approval, and there are no appeals, checks could be sent out soon after. We'll keep you updated as new information is made available.

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