Social media giants face challenges on privacy, rise of smaller apps
Regulators have increased pressures to address emerging social issues on apps.
Social media companies, such as Meta, and X (formerly Twitter, are facing challenges on regulating privacy as well as the rise of disruptive apps, GlobalData reported.
These challenges are expected to transform social media, but GlobalData noted the industry’s future rests on navigating the evolving user preferences and regulatory pressures.
“Smaller and new apps, such as decentralized apps, are somewhat challenging the network effects model. They often sell themselves by offering a smaller, more intimate online experience with enhanced data control and privacy,” Amelia Connor-Afflick, Senior Thematic Intelligence Analyst at GlobalData, said.
The rise of social media platforms have given rise to social issues, such as online hate, harmful content, and disinformation, which regulators and civil society have sought to address through increased pressure on legislation.
“The use and presence of social media platforms worldwide also reflects a free open internet, underpinned by democratic principles. Social media platforms have been embroiled in geopolitical tension in an increasingly unstable world. China and Russia have banned Meta platforms, India banned TikTok, and the EU, the US, and the UK have prohibited the use of TikTok on governmental personal devices,” she said.
“The future of social media hinges on adapting to evolving user preferences and growing regulatory pressures. Striking a balance between personalized advertising, user data privacy, and innovation will be pivotal in shaping the industry’s trajectory.”