Now, Facebook And Messenger Also Get End-To-End Encryption As Meta Levels Up Security
Portfolio Pulse from Ananya Gairola
Meta Platforms Inc. (NASDAQ:FB) has rolled out end-to-end encryption for Facebook and Messenger, with plans to extend it to Instagram. The encryption, based on the Signal and Labyrinth protocols, will take months to reach over a billion users. WhatsApp, also owned by Meta, already features end-to-end encryption. The move follows similar privacy measures by other tech giants, despite concerns over content scanning for illegal activities like child abuse.

December 07, 2023 | 11:08 am
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POSITIVE IMPACT
Meta Platforms Inc. has introduced end-to-end encryption for Facebook and Messenger, aiming to improve user privacy and security. This move could positively influence user trust and potentially increase platform engagement.
The implementation of end-to-end encryption is a significant step for Meta in enhancing user privacy, which is a growing concern for users and regulators. This could lead to increased user trust and engagement, positively impacting the stock in the short term. The importance is rated at 75 due to the potential for increased user retention and attraction of privacy-conscious users. The confidence level is at 90, reflecting the clear announcement and the trend of privacy measures being well-received by the market.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
Apple Inc. has opposed the U.K.’s Online Safety Bill, which conflicts with end-to-end encryption. Meta's encryption update may influence the broader tech industry's stance on user privacy and legislative challenges.
Apple Inc. is mentioned in the context of opposing legislation that could undermine end-to-end encryption. Meta's move reinforces the industry's commitment to encryption, which may support Apple's position. However, the direct short-term impact on Apple's stock is likely neutral. The relevance is rated at 50 due to the shared interest in privacy issues. The importance is at 50, as the news supports Apple's broader privacy stance but does not directly affect its operations. The confidence level is at 80, considering the ongoing public and legislative discussions around privacy and encryption.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Alphabet Inc. has already implemented end-to-end encryption for Android’s RCS messages, indicating its commitment to user privacy. Meta's recent move may put pressure on Alphabet to continue innovating in privacy technology.
Alphabet Inc. is mentioned as a comparator, having already implemented similar encryption measures. Meta's announcement is unlikely to have a direct short-term impact on Alphabet's stock, but it does highlight the industry-wide trend towards user privacy. The relevance is set at 50 as the news is indirectly related to Alphabet's ongoing privacy efforts. The importance is at 50, considering that Alphabet is already a leader in this area. The confidence level is at 80, acknowledging the competitive nature of the tech industry and the potential for Alphabet to respond to Meta's moves.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50