Rising Risks for Social Media Firms from Government Regulation

Global Business
Environment Portfolio

Table of Contents
Rising risks global social media firms such as Facebook, Twitter and Instagram, face from
proposed or actual government regulation and their possible impact on the firm.................3
INTRODUCTION.......................................................................................................................3
MAIN BODY...............................................................................................................................3
CONCLUSION............................................................................................................................4
Describe and explain how President Trump’s approach to economic policy impacts upon
foreign economies such as the UK or EU or China....................................................................4
INTRODUCTION.......................................................................................................................4
MAIN BODY...............................................................................................................................4
CONCLUSION............................................................................................................................5
Discuss and interpret how emerging economies are presenting opportunities for global
expansion for businesses using examples to illustrate your work.............................................5
INTRODUCTION.......................................................................................................................5
MAIN BODY...............................................................................................................................6
CONCLUSION............................................................................................................................6
REFERENCES..............................................................................................................................7

Rising risks global social media firms such as Facebook, Twitter and
Instagram, face from proposed or actual government regulation and their
possible impact on the firm
INTRODUCTION
Social Media firms like Twitter, Facebook and Instagram have been facing rising risks
from the various regulations of the government. The UK government has regulations such as
“Duty of Care” that all social media firms are expected to adhere to, so as to protect users.
Another regulation is “General Data Protection Regulation” which focuses on privacy and
protection of data in the European Union and European Economic Area (Adekola and Sergi,
2016). Knowing about their importance, Facebook has employed nearly 30,000 people who work
on safety and security. If any organization fails to adhere to these regulations, it has to face
heavy fines.
MAIN BODY
The impact of new General Data Protection Regulation (GDPR) on Facebook
The General Data Protection Regulation (GDPR) is a law set by the UK government for
the protection of privacy as well as data in the European Union. The regulation came into effect
in the year 2018 and replaced all the previous data protection rules in the European Union (What
is GDPR? The summary guide to GDPR compliance in the UK, 2020). The regulation gives
people more control of their personal information and was basically designed to protect the
personal information of users online. The regulation is particularly meant for social media firms
like Facebook, Twitter and Instagram (Alexandrova, 2018). If any organization fails to adhere to
the rule, it will impact their performance adversely. The company will have to face heavy fines if
they fail to comply with the requirements. Therefore, companies like Facebook should ask its
users for the permission of using their personal data. If it does not do so, it can lead to the
company might losing its user’s trust.
If Facebook uses, stores or manages any kind of data of its users, it means that GDPR
will affect it. But Facebook is a company that is committed to protecting the data and privacy of
its users and thus complies to the different laws. It makes sure that all its products and services
are in sync with the General Data Protection Regulation (GDPR). The company has been