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Facebook's user base has declined in Europe, the company said Tuesday in its call for third-quarter results. This is the second consecutive quarter that Facebook has lost European users.
The decline is significant because Facebook has more users in Europe than in the United States. This demotion comes after the Cambridge Analytica privacy scandal and the implementation of the new European privacy law, known as the RGPD.
Both issues have been in the news in Europe for months, forcing users to recognize the amount of information they disclose. Facebook's response to GDPR rules has forced all users to inspect their privacy settings. The result seems to be that many users have reduced their participation in the application.
Facebook executives have pledged to follow Europe's example of privacy regulation in the United States, citing similar downside prospects in North America.
- Active monthly Facebook users in Europe: 375 million
- Active monthly Facebook users in the US: 242 million
Every month, two million users have abandoned service in Europe since the first quarter and four million have dropped out daily. The third quarter was the first full quarter of application of the GDPR rules.
- Decline in the number of monthly active users in Europe, T1 to T3: 377 million to 375 million
- Decline in the number of daily active users in Europe, T1 to T3: 282 million to 278 million
Interviewed at a conference in Europe last week if it would support the introduction of a GDPR equivalent in the United States, Facebook privacy officer Erin Egan said "Yes"We support strong and effective privacy legislation in the United States and around the world," said Egan. We recognize the value of the regulation of the protection of privacy. "
Read more: How to see all the apps that follow you on Facebook – and block them
CEO Mark Zuckerberg also spoke of paying more attention to user privacy, although he did not specifically support an American version of the GDPR. Apple CEO Tim Cook, speaking at the same conference, said he would support such a move. Some US lawmakers are considering a new law on the protection of privacy.
The decline in daily active users in Europe, from peak to trough, was 1.4%. If a similar drop occurred in the United States, Facebook would lose about 3.4 million users, according to Tuesday night's figures.
Facebook shares were up about 5% on Wednesday, perhaps because the GDPR declines were already embedded. Zuckerberg had warned investors during his first quarter call to expect declines due to GDPR. Historically, Facebook's share price has been sensitive to the growth in its number of users. The growth of US users is flat. Daily active users fell by one million in the United States in the fourth quarter of 2017, which is the only time the market has shown signs of weakness.
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