As Facebook turns off facial recognition in Europe, is this the start of a change for the company?

Meet the new social network, not quite the same as the old social network.

After a long struggle with the Irish Data Protection Commission, Facebook is set to delete the last tranche of data kept from its facial recognition feature, dubbed Tag Suggestions, and turn it off for all users today. It just the latest retreat in a series of changes which may redefine the company.

The Tag Suggestions feature was first announced in December 2010. By using a mixture of information about facial shape and features, and contextual clues such as other people in the same album or picture, Facebook is able to suggest to users the names of other people in photos they have taken. Similar capabilities appear in other software – Apple's iPhoto, for instance, has an offline version – but Facebook's implementation leverages its vast user base to get more data than any competing company could manage.

However, Facebook implemented the Tag Suggest feature as an automatic opt-in for all users. That, combined with the fact that most photos on Facebook aren't uploaded by their subjects – obviously, since someone is normally behind the camera – meant that it necessarily played fast and loose with privacy concerns.

Just six months after it was announced, the first objections were raised in the US, and in August 2011, a Hamburg court became the first to rule that it must be opt-in to comply with local privacy laws. A month later, the Irish DPC began a wide-ranging privacy audit in response to complaints from a user group, Europe v Facebook, which included in its remit the facial recognition issues.

Since Facebook's European operations are based in Ireland – largely for tax reasons, since the company has a corporation tax rate of just 12.5 per cent for trading income – the decision of the DPC has wide-ranging effects. The first report, in December 2011, gave Facebook six months to comply with a number of requirements. "Shadow profiles" – profiles made of people who haven't joined Facebook from information uploaded by their friends – had to go, while data retention for searches and ad-clicks was limited, to six months and two years respectively.

The DPC also required Facebook to provide a prominent warning to its European users that it uses facial recognition technology that automatically tags them in photographs.

It was this last requirement which Facebook seems to have found too hard to comply with. In September, it closed Tag Suggestions to new users, and this month, it is shutting the feature entirely in Europe, and trashing the already collected data.

It's a bold move to take for a company which has, in other markets, been doubling down on facial recognition technology. In June, Facebook bought Israeli company Face.com, for a reported $55m. Face.com was the provider of much of the technology used by Facebook, and the company argued that the transaction "simply [brought]… a long-time technology vendor in house."

The company has always known that privacy concerns are one of the largest hurdles it has to to overcome. In its IPO prospectus, filed in February, Facebook highlighted a number of privacy-related risks to its business, from the publicity pitfalls associated with moving faster towards "frictionless sharing" than it's users are comfortable with, to the hurdles that stricter privacy regulation could introduce.

The facial recognition skirmish is an unusually under-the-radar battle for Facebook, however. Most of its highly publicised missteps involve public information being shared without the explicit permission or notification of users. This includes, for example, the ability of friends to "check in" people in Facebook Places without asking, as well as the various concerns over the frictionless sharing of social readers and apps like Spotify.

In fact, the first major privacy battle Facebook had to fight was over this type of issue, though in hindsight it demonstrates nothing so much as how much more comfortable we've become about sharing online. In September 2006, Facebook activated the News Feed, a feature now associated with the company more than anything other than, perhaps, the "like" button. But at the time, the idea of aggregating all this information – publicly available, but never before displayed in one place – was enough to spark user rebellion.

In what has become typical for Facebook, the company bet the business on people getting used to the new rules of the game. And they did, just like they did with the changed default privacy settings, the creation and promulgation of "@facebook.com" email addresses, and the aforementioned Places feature.

But three recent moves by Facebook suggest that the company may be changing its attitude, both voluntarily and as a forced reaction to circumstances.

The first is the deletion of facial recognition data, as well as the other changes mandated by the DPC. Facebook has always dealt quite well with user discontent – if only by successfully ignoring it – but when the law gets involved, it can be forced to backtrack far further than it normally would. It also means that it can be held to account for infractions of privacy which the average user simply won't notice.

Not many of us realised Facebook was even tracking search data, putting together a profile of us which we can't see, and few would have cared even if we did. But the DPC, like other information commissioners worldwide, has the authority and remit to ensure that data is collected with permission, and not retained indefinitely. Facebook knows it will face these problems with greater regularity as other nations step up to their responsibility to protect their users, and that will surely change its attitude.

The second is that Facebook itself has been backtracking from frictionless sharing, which had the potential to be one of the biggest clashes between it and its users. Andy Mitchell, Facebook's Manager of Media Partnerships, said last month that the company was moving away from it because user feedback wasn't good. This isn't just an issue with people being displeased that what they thought was private was in fact public – although that has happened as well.

For Facebook, the bigger issue is that the results of frictionless sharing just aren't particularly interesting. Sure, Facebook would like to know every news story you read, or every song you play, because it helps them build up a formidable picture of you to sell to advertisers. The problem is that social media is only interesting to anyone else if it allows people to present a curated vision of themselves. Nobody cares about the full list of songs you've played, but they may want to hear the one which is your absolute favourite at the moment. If Mitchell is to be believed, Facebook has come around to this way of thinking. The privacy benefits for users should be obvious.

The third change by Facebook is perhaps the most important. It is that the company is demonstrating a growing awareness that advertisement income alone cannot help the company achieve the goals its shareholders have set for it. It's tricky to estimate a price/earnings ratio for Facebook, since it hasn't released any results since it went public, but Business Insider estimate it's around 32. That means that you would need to hold Facebook stock for thirty-two years for it to make profit equivalent to the amount of capital you've provided them – or, more accurately, it means that the majority of Facebook's shareholders expect it to start making more money.

The problem is that Facebook's previous earnings growth has come largely from user growth. But with over a billion users, it starts to get very tricky to get any growth – the size of the planet is a constraining factor. As a result, Facebook needs to get more money per user.

One way to do this is, of course, to make ad space more valuable to advertisers, and that's what all of the company's social profiling is aimed at; but that's unlikely to be enough. For perhaps the best hint of the future, look to Facebook's recent launch of Facebook Gifts. The tagline is "Real moments. Real gifts." But perhaps the phrase "Real money" should be added there, because that's what is really important. Facebook wants you to spend real money buying gifts for friends through them – and then, of course, take a cut of the transaction that follows.

A Facebook which makes money from the services it provides, rather that providing services as a sidebar to its real business of selling your data to advertisers, is a company which has a vastly longer half-life. I hope they know that too.

The facebook hompage in 2005. Photograph: Wikimedia Commons

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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Move objects with your mind – telekinesis is coming to a human brain near you

If a user puts on the Neurable headset, they can move virtual objects with their thoughts. 

On 30 July, a blog post on Medium by Michael Thompson, the vice-president of Boston-based start-up Neurable, said his company had perfected a kind of technology which would be “redrawing the boundaries of human experience”. 

Neurable had just fulfilled the pipe dreams of science fiction enthusiasts and video game fanboys, according to Thompson – it had created a telekinetic EEG strap. In plain English, if a user puts on the Neurable headset, and plays a specially-designed virtual reality video game, they can move virtual objects with their thoughts. 

Madrid-based gaming company eStudioFuture collaborated with Neurable to create the game, Awakening. In it, the user breaks out of a government lab, battles robots and interacts with objects around them, all hands-free with Neurable's headset. Awakening debuted at SIGGRAPH, a computer graphics conference in Boston, where it was well received by consumers and investors alike.

The strap (or peripheral, as it’s referred to) works by modifying the industry standard headset of oversized goggles. Neurable's addition has a comb-like structure that reaches past your hair to make contact with the scalp, then detects brain activity via electroencephalogram (EEG) sensors. These detect specific kinds of neural signals. Thanks to a combination of machine-learning software and eye-tracking technology, all the user of the headset has to do is think the word “grab”, and that object will move – for example, throwing a box at the robot trying to stop you from breaking out of a government lab. 

The current conversation around virtual reality, and technologies like it, lurches between optimism and cynicism. Critics have highlighted the narrow range of uses that the current technology is aimed at (think fun facial filters on Snapchat). But after the debut of virtual reality headsets Oculus Rift and HTC Vive at 2016’s Game Developers conference, entrepreneurs are increasingly taking notice of virtual reality's potential to make everyday life more convenient.

Tech giants such as Microsoft, Facebook and Google have all been in on the game since as far back as 2014, when Facebook bought Oculus (of Oculus Rift). Then, in 2016, Nintendo and Niantic (an off-shoot from Google) launched Pokémon Go. One of Microsoft’s leading technical fellows, Alex Kipman, told Polygon that distinctions between virtual reality, augmented reality and mixed reality were arbitrary: "At the end of the day, it’s all on a continuum." 

Oculus’s Jason Rubin has emphasised the potential that VR has to make human life that much more interesting or efficient. Say that you're undergoing a home renovation – potentially, with VR technology, you could pop on your headset and see a hologram of your living room. You could move your virtual furniture around with minimal effort, and then do exactly the same in reality – in half the time and effort. IKEA already offers a similar service in store – imagine being able to do it yourself.

Any kind of experience that is in part virtual reality – from video games to online tours of holiday destinations to interactive displays at museums – will become much more immersive.

Microsoft’s Hololens is already being trialled at University College London Hospital, where students can study detailed holograms of organs, and patients can get an in-depth look at their insides projected in front of them (Hololens won’t be commercially available for a while.) Neurable's ambitions go beyond video games – its headset was designed by neuroscientists who had spent years working in neurotechnology. It offers the potential for important scientific and technological breakthroughs in areas such as prosthetic limbs. 

Whether it was a childhood obsession with Star Wars or out of sheer laziness, as a society, we remain fascinated by the thought of being able to move objects with our minds. But in actual realityVR and similar technologies bring with them a set of prickly questions.

Will students at well-funded schools be able to get a more in-depth look at topography in a geography lesson through VR headsets than their counterparts elsewhere? Would companies be able to maintain a grip on what people do in virtual reality, or would people eventually start to make their own (there are already plenty of DIY tutorials on the internet)? Will governments be able to regulate and monitor the use of insidious technology like augmented reality or mixed reality, and make sure that it doesn't become potentially harmful to minors or infringe on privacy rights? 

Worldwide spending on items such as virtual reality headsets and games is forecast to double every year until 2021, according to recent figures. Industry experts and innovators tend to agree that it remains extremely unlikely you’ll walk into someone examining a hologram on the street. All the same, VR technology like Neurable’s is slowly creeping into the fabric of our lived environment.