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Facebook Investors Increase Pressure on CEO Mark Zuckerberg To Step Down

Facebook has also refuted allegation that it knew about Russian activity as early as the spring of 2016 but was slow to investigate it at every turn

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Facebook releases Messenger redesign on Android, iOS. Pixabay

Facebook investors have increased pressure on Chairman and CEO Mark Zuckerberg to step down after a New York Times investigation suggested that the social network hired a Republican-owned political consulting and PR firm that “dug up dirt on its competitors”.

According to a report in The Guardian on Saturday, Jonas Kron, Senior Vice President at Trillium Asset Management which owns a substantial stake in Facebook, “called on Mark Zuckerberg to step down as board chairman in the wake of the report”.

“Facebook is behaving like it’s a special snowflake. It’s not. It is a company and companies need to have a separation of chair and CEO,” Kron was quoted as saying.

The New York Times report suggested that Facebook hired Definers Public Affairs, a Washington, D.C.-based conservative firm which did PR work for the social networking giant “and dug up dirt on the company’s competitors and its critics”.

In a press call, Zuckerberg denied he had any prior knowledge about this firm.

Facebook
Facebook App on a smartphone device. (VOA)

“After reading the article, I got on the phone with our team and we are no longer working with this firm,” he said.

Definers allegedly “encouraged the depiction of Facebook’s critics as anti-Semites and had published news articles criticising Facebook’s competitors”.

Another Facebook investor Natasha Lamb from Arjuna Capital said the combined role of chairman and chief executive means that “Facebook can avoid properly fixing problems inside the company”, said the report.

According to TechCrunch, founded by a Republican campaign manager known for his dirt-digging prowess, Definers is far from a normal, politically neutral contractor.

In a statement, Facebook COO Sheryl Sandberg also denied any knowledge of the firm.

Mark Zuckerberg
Mark Zuckerberg. Flickr

Facebook said that it used the consultant Definers Public Affairs to look into the funding of “Freedom from Facebook” to demonstrate that it was not simply a spontaneous grassroots campaign, as it claimed, “but supported by a well-known critic of our company,” presumably liberal financier George Soros.

“To suggest that this was an anti-Semitic attack is reprehensible and untrue,” the company added.

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Facebook has also refuted allegation that it knew about Russian activity as early as the spring of 2016 but was slow to investigate it at every turn.

As fallout of the report, Facebook stocks fell 3 per cent on Friday to $139.53, the lowest since April 2017. (IANS)

Next Story

Social Media Giant Facebook Sues Chinese Company Over Alleged ad Fraud

According to a report in CNET, Facebook said it has paid more than $4 million in reimbursements to victims of these hacks

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An iPhone displays the app for Facebook in New Orleans, Aug. 11, 2019. VOA

Facebook has sued a Chinese company for allegedly tricking people into installing a malware, compromising peoples accounts and then using them to run deceptive ads.

Facebook blamed ILikeAd Media International Company Ltd. and two individuals associated with the company — Chen Xiao Cong and Huang Tao – for the fraud.

The defendants deceived people into installing malware available on the Internet. This malware then enabled the defendants to compromise people’s Facebook accounts and run deceptive ads promoting items such as counterfeit goods and diet pills, the social media giant said in a blog post.

The defendants sometimes used images of celebrities in their ads to entice people to click on them, a practice known as “celeb bait”, according to the lawsuit filed on Wednesday.

In some instances, the defendants also engaged in a practice known as cloaking, Facebook said.

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The social media application, Facebook is displayed on Apple’s App Store, July 30, 2019. VOA

“Through cloaking, the defendants deliberately disguised the true destination of the link in the ad by displaying one version of an ad’s landing page to Facebook’s systems and a different version to Facebook users,” said Facebook’s Jessica Romero, Director of Platform Enforcement and Litigation and Rob Leathern, Director of Product Management, Business Integrity.

Cloaking schemes are often sophisticated and well organised, making the individuals and organisations behind them difficult to identify and hold accountable.

Also Read: New Account of Twitter named @TwitterRetweets to Highlight Best Tweets

As a result, there have not been many legal actions of this kind.

“In this case, we have refunded victims whose accounts were used to run unauthorised ads and helped them to secure their accounts,” they wrote.

According to a report in CNET, Facebook said it has paid more than $4 million in reimbursements to victims of these hacks. (IANS)