Jun 24 2009
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“ When Facebook took action against two third-party ad networks for displaying ads the company felt deceptive, other networks and app developers quickly toed the line. In that ecosystem, Facebook has the power to take away their business with a few strokes of a keyboard, but in the broader ecosystem, media is fragmented, and the threat of legal challenges not strong enough. Almost every player knows that some action will ultimately happen, but they will get hit whether they run it or not, and in the past, the most ultimatley profitable action has been to get while gettin’ is good. You might pay a fine and have to change your ways, but you’re better off having that pool of funds. Those gains then act like an internal VC fund to provide the company a runway for going more legitimate.
