Around the Net

Facebook's Global Limitations

  • wSJ, Thursday, February 2, 2012 12:21 PM

Next up for Facebook -- after its billions in public funding start pouring in -- is, or course, world domination! Or not. As The Wall Street Journal reports, the social network still faces intense competition in key global markets. In China, where the Facebook still isn’t allowed to operate, rivals are flourishing. “Chinese social media companies, including Sina, Renren and Tencent Holdings Ltd., have thrived in terms of membership and activity over the past two years despite requirements from authorities to filter content based on censorship regulations,” reports WSJ. Yet, because no single company has a presence as ubiquitous as Facebook's position in the United States, they apparently don't have as much influence over the online advertising market. Does this present an opportunity for Facebook?

Perhaps, as its Chief Executive Mark Zuckerberg has made serious efforts to ingratiate himself with Chinese authorities and business leaders, though there are no signs yet that the country plans to back down on strict censorship requirements and other limitations on foreign companies. With or without China, Facebook's membership has become increasingly global, with 80% of its more than 800 million members located outside the U.S. As WSJ notes, however, those numbers only make “the relatively small representation from China in its network increasingly glaring.”

Read the whole story at wSJ »

Next story loading loading..