Based on the revelations of former Facebook employee Frances Haugen, the American daily newspaper ‘The Wall Street Journal’ published the so-called Facebook Files in early September. Facebook was putting profit before the safety of users and the public good, the accusation goes. The revelations coincide with increased efforts by the EU to submit big technology companies and their digital services to a comprehensive regulation at last.

The EU Commission had submitted two legislative proposals in December 2020: firstly, the Digital Services Act, which seeks to protect users on online platforms and to enable fair competition via accountability and transparency rules; and secondly the Digital Markets Act, which aims at limiting the market power of big technology companies. Currently both draft proposals are being debated by the EU Parliament and the Council. In this sense, the revelations about Facebook are also of special interest for MEPs. Therefore, Frances Haugen was invited to a public hearing at the EU Parliament on 8 November 2021 to describe her impressions and to answer MEPs’ questions. The hearing was met with great interest both from parliamentarians and journalists.

Haugen used her initial statement to get straight to the point: “The Facebook platform today damages the health and safety of our communities and threatens the integrity of our democracies”. According to Haugen, the division of society is being driven forward via Facebook. Facebooks algorithms prefer contents, which would maximise users’ interactions. However, this would result in polarised messages, fake news and violence-inciting contents being rapidly spread on Facebook, above all in non-English speaking countries. Apart from that, using Facebook products – such as Instagram – is particularly harmful to young people and especially teenage girls. Haugen’s key accusation: Facebook was aware of these downsides and the negative effects of its products; however, the company consciously decided – due to its own profit-centred interests – against implementing effective solutions. In short: Facebook has repeatedly and knowingly put its profits before the well-being of people.

In view of this urgent problem, Haugen explicitly welcomed the EU’s legal advances in the area of digital policymaking. “The Digital Services Act […] has the potential to be a global gold standard”, said Haugen. Asked by MEPs, Haugen also voiced various recommendations for action concerning European legislation. In order to ensure the effectiveness of the Digital Services Aact, it is vital to close loopholes: For example, there should be no exceptions for media content and preserving business secrets. Haugen also emphasised the importance of comprehensive transparency, above all in respect of collected data and algorithms. In future, this information shall not only be made available to selected experts but to the entire civil society. Apart from that, Haugen supported the creation of an EU-wide regulatory body. In reply to the question, what her thoughts were regarding personalised advertising, Haugen was in favour of opt-in options rather than a comprehensive ban. However, she supported a ban of so-called Dark Patterns; these are design elements of social media platforms and websites, which entice users to do things, which are not in their interest.

The hearing made it clear: ambitious laws are required to effectively regulate technology companies and their services and to protect consumers. In the Austrian Chamber of Labour’s opinion, the draft proposals on both the Digital Services Act and the Digital Markets Act are heading in the right direction. However, as depicted by the AK in its two Position Papers, some sections are in need of substantial improvements. Only then will it be possible, to put the public good above the individual interests of corporations.

Further information:

AK EUROPA Position Paper: Digital Services Act

AK EUROPA Position Paper: Digital Markets Act

Wall Street Journal: The Facebook Files

Netzpolitik.org: Frances Haugen: Facebook whistleblower advice to the EU (German only)