Facebook allowed Netflix to read your private messages in barter data exchange

Facebook has been accused of allowing Netflix to access users' private messages in exchange for data, according to recently revealed court documents. This revelation comes amid Meta's decision to discontinue its streaming business, including original shows like Red Table Talk on Facebook Watch, last April as per a Gizmodo report. Meta had decided to do away with the streaming business and attributed it to cost-cutting measures and layoffs within the company.

However, court documents filed in an antitrust lawsuit against Meta shed new light on the situation. The lawsuit alleges that Meta's decision to shut down its streaming business was influenced by Netflix, one of its significant advertising partners. The lawsuit further accuses Meta of engaging in anti-competitive practices that harm social media competition and consumers.

According to the court documents, Netflix and Facebook had a strong relationship, largely because Netflix spent a lot of money on advertising on Facebook's platform. The documents suggest that Netflix had some influence over negotiations to stop Facebook from competing with it in the streaming video market. Additionally, it's claimed that Facebook allowed Netflix to see private messages of its users through agreements made as far back as 2013.

In exchange for this access, Netflix gave Facebook data about how users interacted with Netflix's recommendations, such as how often they sent recommendations to others and how many clicks those recommendations received.Previously, Meta had claimed to have implemented end-to-end encryption for all personal chats and calls on Messenger and Facebook. However, reports indicate that Facebook allowed certain companies, including Netflix, to read users' private messages. Meta has not provided a response to these allegations despite requests for comment.

"For nearly a decade, Netflix and Facebook enjoyed a special relationship," said the lawsuit accessed by Gizmodo read. "It is no great mystery how this close partnership developed, and who was its steward: from 2011-2019, Netflix's then-CEO Hastings sat on Facebook's board and personally directed the companies' relationship"

According to the report, Netflix had increased its advertising spending on Facebook, reaching approximately $150 million per year by early 2019. It's also alleged that Netflix entered into agreements with Facebook for increased access to data analytics during this period. Reed Hastings, Netflix's founder and former CEO, left Facebook's board later in 2019.

Meta, Facebook's parent company, responded to these allegations by stating that its agreements and relationships with Netflix are common industry practices. However, they did not directly address whether competition with Netflix played a role in the decision to shut down Facebook Watch.

In a statement to Gizmodo, a spokesperson for Meta expressed confidence that the lawsuit's claims are without merit. However, they did not provide further details regarding the reasons behind the decision to shut down Facebook Watch or the nature of their relationship with Netflix.