Much has been written about Facebook’s upcoming initial public offering—which, if successful, will raise more than $5 billion, making it one of the largest IPOs in history. The information about Facebook’s operations that has been released paints a picture of a company that is certainly not without risks to investors. But with a customer base of nearly 800 million, who cares? We’ve also been reading a lot about Google’s attempt to change its privacy policies and how governments in the United States, Europe, and elsewhere have reacted with significant concerns about the consumers who will be affected by the revisions. Adding to the paternalistic instincts of legislators and consumerists is Facebook’s planned “timeline” profile page and the privacy concerns surrounding it.
Combined, Facebook and Google are once again profoundly changing the world in which companies operate, as they already have so many times in the recent past. This time, however, those changes may go to the core of how companies deal with their customers in the cyber marketplace. This column addresses what may be next on the horizon and why corporate counsel need to be concerned.
