Google is starting to learn that users want privacy. Facebook still does not understand. – The madman

The media recently revealed that Alphabetof (NASDAQ: GOOG) (NASDAQ: GOOGL) The Google Plus social media platform had a security issue that allowed some third-party developers to access user profile data in the last three years. Google discovered the existence of the bug in March, but never informed its users.

The time it took Google to find the bug and the fact that it does not want to inform users is a black eye for Google at a time when users are increasingly concerned about the fact that companies sell their data, not to mention that they could be siphoned by third party developers without their consent. Since then, Google has closed most of Google Plus, although companies can still use the platform.

Facebook (NASDAQ: FB)for its part, experienced a significant data breach a few weeks ago, which allowed hackers to access about 50 million user accounts, which sometimes allowed them to lock legitimate users out of their own account. Facebook's reputation had already wreaked havoc at the beginning of the year, following the news that data analysis firm Cambridge Analytica had access to 87 million user data. from Facebook without their consent.

No technology company is immune to breaches or third parties attempting to access user data, but there are differences in how companies respond to this problem. One of those differences was highlighted last week when Facebook and Google launched new smart home devices for consumers. Google is aiming to strengthen the privacy of its users, while Facebook seems to remove more.

Source of the image: Facebook.

Two distinct approaches

The new Google Home Hub is essentially the same device as its home smart speaker, more and more popular. The device comes with Google Assistant, which helps answer questions the way it is able. It also serves as a mini control center for light bulbs, speakers and other smart home products connected to the user's Wi-Fi network. The company's smart speakers do not have a domestic hub, it's a screen from which a user can control connected devices, view search results, watch YouTube clips or broadcast images from Google Photos.

What is lacking in the camera, it is a camera. Google's vice president of product management, Diya Jolly, said on the company's blog that it was very intentional: "We deliberately decided not to include camera in Google Home Hub, so you can place it comfortably in the private spaces of your house, like the bedroom. "

While Google recognizes that it may not be the best time to ask its users to install connected cameras at home, this is precisely what Facebook does. The social media giant recently launched its own Smart Home device, called Portal, specifically designed to allow users to easily make and receive video calls at home. There are two versions of the device: one with a 15.6-inch widescreen portrait and the other with a 10.1-inch thumbnail screen.

Facebook has acknowledged that privacy could be a concern. It allows users to press the device at any time to quickly turn off the microphone and the camera. Both devices also come with a physical cache that can be placed on the lens of the camera. The company also indicated that it did not listen to telephone conversations or retain video call content.

With these features, Facebook is clearly trying to address the concerns of potential users about the device. Nevertheless, the timing of the company asking users to place a device with both a microphone and a camera at home is appalling. Facebook is essentially asking users to ignore recent privacy and data breaches and to trust the company to facilitate videotelephony calls in their kitchens, living rooms, and bedrooms.

What this means for investors

It can not be denied that these two companies are collecting large amounts of user data to be able to sell digital ads to users on their platforms: Facebook and Google will account for nearly 58% of digital ad sales in the US this year . But at least Google recognizes that users come to the idea that they must give up any sense of privacy in order to receive a service from a technology company.

The worst for Facebook is that a recent study by Pew Research shows that Americans have the least trust in social media companies to protect their data, compared to the federal government, businesses, email providers and to cell phone and credit card companies.