
via Reuters
SAN FRANCISCO, Feb 18 (Reuters) – Facebook’s efforts to build a business model around its online social network have hit another roadblock, as a backlash by its users forced the company to reverse a new policy.
The dispute involves changes that Facebook had made to its terms of service agreement. Some critics said the changes appeared to give the company a perpetual right to content that users post on the network.
People Against the new Terms of Service, a Facebook group created to oppose the changes, counted more than 88,000 users on Wednesday.
The about-face by Facebook underscores the sensitivity that many consumers have about their personal data, even on sites where they freely share information about their lives with online friends.
And it reflects the challenges facing Facebook as it seeks to squeeze money out of its network of 175 million users and to offset the costs of its rapid growth.
Facebook is quickly burning through its initial funding, said Sanford Bernstein analyst Jeffrey Lindsay. Among other things, the social network needs to pay for the computers and equipment that host its online service around the world.
“That’s real money,” said Lindsay. “They’re realizing that they have to get a business model.” Continue reading →