business

Facebook’s New Dating Feature Is Already Under Scrutiny

Updated on
Photographer: Kiyoshi Ota/Bloomberg

The Nordea funds that blacklisted Facebook Inc. for privacy risks are now questioning the social media giant’s decision to expand into a dating service that will rely on highly sensitive personal information being shared.

“Facebook needs 3 years to fix the data and privacy issues, but just found time to launch a dating feature and take on Tinder,” Sasja Beslik, head of sustainable investing at Nordea Asset Management, wrote on Twitter.

Read more on Facebook’s plans for a dating feature

Facebook unveiled the dating feature on Tuesday, sending shares of competing services lower. Chief Executive Officer Mark Zuckerberg acknowledged that the company needs “to do more to keep people safe but we will also keep building.”

Ali Mogharabi, an analyst with Morningstar Investment Service, said such a service could give Facebook a whole new avenue for growing its advertising business.

Read more on Facebook being blacklisted at Nordea’s sustainable investment unit

In an effort to address concerns about privacy and data collection, Facebook says it’s working on a "clear history" tool that will give users the option of scrubbing their accounts of data sent to the social network via outside websites and apps. The Menlo Park, California-based company said the feature, which will take several months to build, is a response to feedback showing that users want more control over their personal information.

Despite the data scandal, Facebook reported a 49 percent jump in revenue in the first quarter, beating analysts’ estimates and sending the company’s shares about 10 percent higher on April 26, when it published the results.

Understanding the Facebook-Cambridge Analytica Story: QuickTake

Beslik is known for taking strong stances on stocks where he thinks there might be problems with environmental, social and governance issues. In March, he blocked Nordea’s sustainable funds from investing in Facebook, citing privacy risks. Beslik once even banned the fund from adding Nordea Bank AB shares, amid a tax avoidance probe.

(Adds background on Facebook’s earnings, and ‘clear history’ tool.)
    Before it's here, it's on the Bloomberg Terminal. LEARN MORE