According to research, people are beginning to distrust social media, especially Facebook




In the wake of the Cambridge Analytica scandal that rocked Facebook earlier this year, researchers at Macquarie Research believe people are now wary of social media, and there exist a certain negative connotation surrounding big technology compenies, with Facebook at the front of the queue. 

That fear has translated to the stock market where Facebook shares have dropped by over 2% since it was revealed that Cambridge Analytica used Facebook's data for Political profiling in the lead up to the last US. Presidential elections. 

The research papers that was released on Monday believes there are three particular area of risk for the big corporation, and they are: political, legal and lastly trust issues. 

There are already rumours that Mark Zukerberg will be called to appear before Congress while the UK's information Minister is seeking a warrant to raid Cambridge's Analytica Office. There are also increasing call for Facebook to explain thier role in the data breach. 

For Zukerberg though, the biggest worry has to do with the issue of trust. Once the general public loses trust in a big Corporation, it is a hard task to regain it - almost impossible infact. He also has to find a balance between Political ads and Political profiling that makes use of people's data without their content. 

Speaking to the New York Times, Zukerberg said while he hasn't seen a meaningful number of people deleting their Facebook accounts, the whole negative connotation about the company does not bode well going forward. 

He said "I think it's a clear signal that this is a major trust issue for people, and I understand that. And whether people delete their App over it or just don't feel good about using Facebook, that's a big issue that I think we have a responsibility to rectify.  

Even Whatsapp cofounder, Brian Action, whose company was acquired by Facebook for $19 billion in February, seem to have lost patience with Facebook, and Tweeted: "It is time. #deletefacebook. 

How Facebook come out of this whole episode is left to be seen and how its aftermath shapes the political and legal structure for big Tech will reveberate for a long time.