Facebook's user base has fallen in Europe, the company reported Tuesday in the third quarter. That's the second quarter in…
Facebook’s user base has fallen in Europe, the company reported Tuesday in the third quarter. That’s the second quarter in a row where Facebook has lost European users.
The decline is significant because Facebook has more users in Europe than it does in the United States. The cut-off comes after the Cambridge Analytics integrity scandal and the implementation of Europe’s new continental integrity team called GDPR.
The two issues have been on the front pages of Europe for months, which forces users to acknowledge the amount of information they give away. Facebook’s response to the GDPR rules required all users to inspect their privacy settings ̵
1; and the result seems to have been that many users called down their engagement with the app.
Two million users have abandoned the service in Europe every month since the first quarter and 4 million have abandoned it on a daily basis . The third quarter was the first full quarter of the GDPR rules.
Learn more: How to view all apps that track you on Facebook – and block them
The decline in daily active users in Europe, peak to trough, was 1.4%. If a similar decline occurred in the US, Facebook would lose about 3.4 million users based on Tuesday’s number.
The Facebook share was about 5% in the premarket trading Wednesday morning, perhaps because GDPR downturns were already priced. Zuckerberg had warned investors on its first quarterly call to expect downturns as a result of GDPR. Historically, the Facebook share price has been sensitive to the number of user developments. US user development is flat. Daily active users were muted by 1 million in the US in the fourth quarter of 2017, the only time the market has shown a sign of weakness.