Facebook zooms in on privacy control

The secret of Facebook's success, and its future viability, hinges on how the social-network site protects privacy, taming the anything-goes intrusiveness of what might as well be known as the World Wild Web.

Chris Kelly, Facebook's chief privacy officer, said users want greater control over who sees their personal information, rather than expecting total privacy, or anonymity, the concept underlying much of the legal thinking on privacy for more than a century.

"Privacy is beginning to transform from the classic 'right to be left alone' to this notion that 'I want control over my information'," Kelly said in an interview on the sidelines of a Fortune magazine technology conference last week.

Started in 2004 by then-undergraduate Mark Zuckerberg as a social site for fellow Harvard University students, Facebook has been opened up over the last year to users of all ages, who have a degree of control over who sees what personal details.

These privacy controls paradoxically encourage users to reveal more about themselves within their approved circle of friends than they would do on the wide-open Web. As a result, many post mobile phone numbers, reveal political loyalties or even show changes in their dating status for friends to see.

Facebook has seen membership spike 25 per cent to more than 30 million since May, when it opened up to outside software developers. This now means users can engage in online activities while limiting their exposure to security pitfalls.

"We have tried to take a very control-based approach for our users, so Facebook information doesn't leak out on the Web in general," Kelly said. "Privacy, as anonymity, is declining, but privacy, as control, is on the rise."

As a company, Facebook's livelihood hinges on how it balances the trade-offs between privacy and openness.

The free, advertising-supported site runs a limited number of conventional Web banner ads. But it also is looking at how to offer ads that match people's expressed interests without frightening users that their data will be abused by marketers.

"In a trusted environment you share more," Kelly said of the business logic of insuring privacy. "There is an opportunity to target advertising, as long as you keep that trusted environment."

Facebook board member and financial backer Jim Breyer, a partner at venture capital firm Accel Partners, said the company would do well over $100m in revenue in 2007, be profitable and have significant positive cash flow this year.