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Prof. Arun Sundararajan on why privacy risk is Facebook's biggest challenge

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Excerpt from Gigaom -- "'I think the single biggest driver of risk for Facebook … comes down to ‘are they able to strike the right privacy balance?’,' [Sundararajan] told me during a recent interview. It’s kind of a chicken-and-egg problem: Facebook has to use and monetize consumer data into ad revenues to justify its lofty valuation, Sundararajan explained, but if it goes too far and turns off users, it risks losing those very users whose data it relies upon."

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