Is the writing on the wall for Facebook?

Has the Facebook fad seen its day?

We’ve seen it happen to Myspace, and then Bebo; but now Facebook faces being cast off into the pile of unwanted internet has-beens. Recent statistics suggest that the social networking giant has lost nearly a million users in the past month. SocialBakers, a Czech social media statistics company, monitors the activity and membership levels around the globe, and its latest figures illustrate that the United Kingdom has seen the most dramatic drop of all over the past month, with 2.88 per cent of its users backing out.

These statistics come almost simultaneously with Facebook launching their latest venture, Graph Search, an advanced search engine enabling searches within a user’s network. Could we be witnessing Mark Zuckerberg clutching at straws in an attempt to re-boost their dwindling monopoly?

Of course not! (say Facebook). In fact, they’re not worried about declining numbers at all. A spokesperson said,

We are very pleased with our growth and with the way people are engaged with Facebook – more than 50 per cent of our active users log on to Facebook in any given day.

Great stuff, but it still doesn’t explain why 946,120 users in their sixth most popular territory have apparently abandoned them in the past month alone. I bet I could hazard some guesses.

It might be to do with the lull in social networking activity that is quite common to the festive period. Christmas is, after all, about spending time with those you love, not talking to them on Facebook Chat. But disregarding December statistics, over 1 per cent of British Facebook users have still ditched the site throughout January, totalling a hefty loss of nearly 350,000 members in just two weeks.

Or perhaps it’s the concept that people are ready to move on from. 2013 might be the year people finally realise that stockpiling "friends" by the thousands is simply not necessary. A recent study by British anthropologist Robin Dunbar has found that:

The figure of 150 seems to represent the maximum number of individuals with whom we can have a genuinely social relationship, the kind of relationship that goes with knowing who they are and how they relate to us.

But with Facebook allowing for up to 5,000 friends, does this indicate that its ethos could be all wrong for today’s society?

There has been a generational transition since the beginning of Facebook. Most of those using it when it first began in 2004 were students, but almost a decade later this prime audience are professional adults and may not consider it a social necessity anymore. Perhaps the conformity issues which drove everyone on to social networks might drive them off as well: let’s all agree to not-conform!

The introduction of other social networks is also an obvious detriment. Old, reliable Facebook is now being discarded in favour of new, younger models. The public are being seduced by the allure of Twitter’s sleek 140-character-limit and its enviably close relationship with A-list celebrities; and users just can’t resist the enticing charm of Linked In, which promises to unlock the secrets to career progression and therefore eternal happiness.

But the most likely cause of this harsh abandonment? It’s that old chestnut, rights. Rights to property; rights to privacy. Facebook-owned Instagram caused a furore when it attempted to change its terms and conditions to allow for its ownership of subscribers’ photos. They may have backed down a day later, but they certainly lost some users and a whole lot of trust in the process.

Ned RocknRoll has been a victim of Facebook privacy rights. Photos from a party years ago have emerged and are now argued to be a possession of the public. Debates like this mean that the population has increasingly been reminded of the immeasurable information Facebook possesses: what you ate for breakfast; what your telephone number is; what your controversial opinions are – and once posted, these will never cease to be in the public domain.

Is it easier just to bow out altogether?

What will the future hold for Facebook? Photograph: Getty Images
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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.