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Lawsuit alleges Facebook allowed Netflix access to user messages, intended to launch its own streaming platform
Meta, with its dubious track record in protecting user data and privacy, might be in deep trouble. Recent legal documents in a continuing lawsuit imply that Meta could have revealed its users' private data and direct messages to Netflix.
In what could potentially be the largest violation of public faith by Meta under Mark Zuckerberg's leadership, Facebook allowed Netflix to view user's private messages to aid in improving their content programming, according to a lawsuit disclosure.
Surprisingly, legal papers revealed in a continuing monopoly lawsuit against Meta, previously known as Facebook, have unveiled the complex connection between the social media titan and the streaming powerhouse Netflix.
The papers imply that Meta's choice to stop producing unique shows on its platform, such as Jada Pinkett Smith's Red Table Talk, could have been swayed by its collaboration with Netflix, a key advertiser for them, as stated by Gizmodo and Ars Technica.
Meta's venture into the streaming sector, once perceived as a potential competitor to dominant platforms like YouTube and Netflix, now seems to be inactive. In April of the previous year, Meta declared its decision to cease supporting original series on Facebook Watch, essentially putting an end to its aspirations in the video-streaming industry. This action was taken in the midst of budget reduction efforts at Meta, which included job cuts.
Recent submissions in the antitrust case against Meta hint at a more profound reason for the end of its streaming project. These papers imply that Meta scaled back its streaming ambitions to pacify Netflix, a major advertiser on its platform. A letter included in the lawsuit requests Netflix's founder and ex-CEO, Reed Hastings, to submit documents pertinent to the case, suggesting a tight partnership between the two firms.
The legal action, initially brought by Meta users, blames the technology behemoth for monopolistic behaviors harmful to social media rivals and users. The first grievance pointed out covert deals between Meta and Netflix, but the disclosed papers reveal more about the depth of their partnership.
Based on the documents, Netflix's significant ad spend on Facebook helped to build a robust bond, where Hastings is purportedly a key figure in discussions targeted at suppressing competition in the streaming video industry.
People are wondering why Meta would let Netflix have a say in such a crucial business move. The paperwork hints at a profitable alliance between the two firms, where Meta supposedly gives Netflix entry to user's confidential conversations — an accusation that Meta has not explicitly responded to.
Meta's aspirations to dominate the streaming sector, represented by Facebook Watch, did not manage to reach the heights of success enjoyed by platforms such as Netflix or Amazon Prime Video. Even after trying to create unique content and obtaining broadcasting rights for sports events such as MLB games, Facebook Watch wasn't able to stand out in the highly competitive streaming market.
The disclosed legal papers show talks inside Meta regarding significant funding in unique content, comprising of scripted series and brief segments. These conversations allegedly took place during Hastings' tenure as a board member of Meta, which has led to worries about conflict of interest and possible conspiracy.
A significant event took place at the 2017 Recode conference where Hastings understated the rivalry between Netflix and Facebook, but later admitted his mistake in an email to Meta's top brass. The accusers claim that Meta's former COO, Sheryl Sandberg, and Hastings conducted meticulously planned conversations to distract from the direct competition between their companies in the video streaming industry.
As the antitrust litigation progresses, insights from the disclosed legal papers provide a peek into the intricate relations between technology powerhouses and streaming services. These insights underscore the potential impacts of business partnerships on market rivalry and the options available to consumers.
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