Social channel regulation – Business Model of free flow of information

Social channel regulation – Business Model of free flow of information


The recent breach of user’s data to influence people by using advertising tools raised many questions about the regulation of social media channel and its ownership of people’s data and privacy.

Former Facebook exec says “regulation would be good for Facebook, bad for competition”


Facebook CEO Mark Zuckerberg and his testimony with the lawmakers are moving towards debating whether FB or other social media channels should be regulated. If it is a “NO” then the tech products would continue doing the business the way they are doing now.

If it is a “YES”, then many questions would arise like,

  • Regulation up to what extent or range?
  • Is data safe with companies or government?
  • Who should use people’s personal data and how?
  • Where should be the ownership?
  • How will Humans compete with AI, algorithms?
  • If users are allowing to manage the data, then how they would do it?

The Categories:

People’s data could be classified into several categories, but we majorly have classified it into few for quoting as examples,

  • Private:  my choices, my orientations, my confessions, family and friends, personal groups
  • Confidential/Restricted: personal private events, birthplace, SSN
  • Consulted: Browsing patterns related to buying history – other history would go to private
  • Public: personal and professional milestones, sex, location if added manually, Age not exact but a range, interest, professional groups
  • Unique Per Person: Shared with specific person’s only

Business Model:

Many technology companies who completely rely on the free flow of information for its business services or innovation would need to change their business model. The freemium model which consider free users as a product of the platform, have to change its approach.

Some of the business model for tech companies mentioned below in broader approach:

  • Facebook: Run advertisements on the user base
  • Google: Run targeted ads – polyhedral
  • Amazon: Marketplace for goods, suggestions based on user history
  • Linkedin: Subscription and LinkedIn marketing solutions
  • Instagram: Run advertisements on user base and through affiliates
  • WhatsApp: Yet to be identified, though WhatsApp launched for business users providing some of the features critical to the business functionality
  • YouTube: Video content, social Interaction tool, advertising and affiliates
  • Twitter: Content, social Interaction tool, advertising and affiliates
  • Pinterest: Content, social Interaction tool, advertising and affiliates


  • Regulation might control innovation or new ways to identify and increase user experience
  • Data used for creating technology experience is good but when personal/corporate interest are aligned it might change the course of action
  • Voices from politics, tech and small business are calling for more regulation of social media

Last Minute Thoughts:

It’s not a matter of question, whether people share it or not, allowing technology tools to SCAN your data to increase the experience Is always challenging. For example, if we need to upload some images to our Facebook account then the options which we used a few years ago to allow to find the image from gallery and select the image was the best, but now a day allowing Facebook access to gallery automatically allowing its access to all the images is challenging.

Users are not aware what AI could do with the unrestricted access which was given by users without knowing the future consequences, leaving no option to users.

Whats should be the social media tech companies strategy to handle the government regulation and safeguard users data and privacy?

What are the upcoming Business Model Innovation in Social Media domain?


Categories: dStrategy

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  1. Consulting Analysis – Future of Work [FOW] – dwritings

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