Mark Zuckerberg announces his firm’s next business model

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Mark Zuckerberg announces his firm’s next business model
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If it works, the social-networking giant will become more private and more powerful

big overhaul for Facebook came in 2012-14. Internet users were carrying out ever more tasks on smartphones rather than desktop or laptop computers. Mark Zuckerberg opted to follow them, concentrating on Facebook’s mobile app ahead of its website, and buying up two fast-growing communication apps, WhatsApp and Instagram. It worked. Facebook increased its market valuation from around $60bn at the end of 2012 to—for a brief period in 2018—more than $600bn.

Still, he intends to do it. Mr Zuckerberg claims that users will benefit from his plan to integrate its messaging apps into a single, encrypted network. The content of messages will be safe from prying eyes of authoritarian snoops and criminals, as well as from Facebook itself. It will make messaging more convenient, and make profitable new services possible. But caution is warranted for three reasons.

End-to-end encryption will also make Facebook’s business cheaper to run. Because it will be mathematically impossible to moderate encrypted communications, the firm will have an excuse to take less responsibility for content running through its apps, limiting its moderation costs.

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