Firms Boycott Facebook Ads, Costing Zuckerberg $7 Billion
Top brands jointly boycotted ads on Facebook, causing the social media company’s shares to fall 8.3% on Friday. Critics said that Facebook failed to sufficiently police hate speech and disinformation on the platform.
Companies ranging from Verizon Communications Inc. to Hershey Co. stopped their ads on the network. Unilever, one of the world’s top advertisers, said it would stop spending money with Facebook’s properties this year. Coca-Cola Co. said it would pause all paid advertising on social media platforms for 30 days.
As the shares dropped in price, Facebook’s market value fell $56 billion, decreasing Zuckerberg’s net worth down to 82.3 billion on the Bloomberg Billionaires Index.
Mark Zuckerberg responded to the criticism about misinformation on the site: the platform would label all voting-related posts with a link to its new voter information hub. Facebook also expanded its definition of forbidden hate speech, prohibiting ads that label another demographic as dangerous.