While navigating a mammoth advertiser boycott and potential federal antitrust charges, Facebook Inc.’s chief financial officer may be most concerned about California’s strict new privacy law.
The California Consumer Protection Act, or CCPA, is considered the nation’s first true data-privacy law and among the strongest aimed at the digital economy. Consumer advocates say it could usher in more state laws that hold the likes of Facebook Inc. FB, -0.74% and Alphabet Inc.’s GOOGL, -0.04% GOOG, -0.08% Google more accountable for how they monetize the data of billions of people world-wide.
The CCPA officially became California law on Jan. 1, and began being enforced by California Attorney General Xavier Becerra on July 1 after a six-month grace period. When asked about it near the end of the company’s earnings conference call last month, Chief Financial Officer David Wehner launched into a long discourse about its impact on advertising, the lifeblood of Facebook.