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We may not be successful in our efforts to grow usage of and engagement with the Facebook Platform.
We have made and are continuing to make investments to enable developers to build applications (apps) and
websites that integrate with the Facebook Platform. Existing and prospective Platform developers may not be
successful in building apps or websites that create and maintain user engagement. Additionally, developers may
choose to build on other platforms, including mobile platforms controlled by third parties, rather than building on
the Facebook Platform. We are continuously seeking to balance the distribution objectives of our Platform
developers with our desire to provide an optimal user experience, and we may not be successful in achieving a
balance that continues to attract and retain Platform developers. From time to time, we have taken actions to
reduce the volume of communications from Platform developers to users on Facebook with the objective of
enhancing the user experience, and such actions have reduced distribution from, user engagement with, and our
monetization opportunities from, Facebook-integrated apps and websites. In some instances, these actions have
adversely affected our relationships with Platform developers. If we are not successful in our efforts to grow our
Platform or if we are unable to build and maintain good relations with Platform developers, our user growth and
user engagement and our financial results may be adversely affected.
We may not be successful in our efforts to further monetize the Facebook Platform.
We currently monetize the Facebook Platform in several ways, including ads on pages generated by apps on
Facebook, direct advertising on Facebook purchased by Platform developers to drive traffic to their apps and
websites, and fees from our Platform developers' use of our Payments infrastructure to sell virtual and digital
goods to users accessing Facebook via personal computers. Apps built by developers of social games are
currently responsible for substantially all of our revenue derived from Payments. While we have expanded the
number of developers using our Payments infrastructure, our overall Payments revenue may decrease or stay flat
in future periods. In addition, a relatively small percentage of our users have transacted with Facebook Payments.
For example, for the fiscal year ended December 31, 2012, approximately 27 million users purchased virtual
goods using Facebook Payments. If the Platform apps that currently generate revenue fail to grow or maintain
their users and engagement, if Platform developers do not continue to introduce new apps that attract users and
create engagement, if Platform developers reduce their advertising on Facebook, if we fail to maintain good
relationships with Platform developers or attract new developers, or if Platform apps outside of social games do
not gain popularity and generate significant revenue for us, our financial performance and ability to grow
revenue could be adversely affected.
Additionally, we are actively supporting Platform developers' efforts to develop their own mobile apps and
websites that integrate with Facebook. Unlike apps that run within the Facebook website which enable us to
show ads and offer Payments, we generally do not directly monetize from Platform developers' integrating their
own mobile apps and websites with Facebook. Therefore, our Platform developers' efforts to prioritize Facebook
integrations with their own mobile apps or websites may reduce or slow the growth of our user activity that
generates advertising and Payments opportunities, which could negatively affect our revenue. Although we
believe that there are significant long-term benefits to Facebook resulting from increased engagement on
Facebook-integrated websites and mobile apps, these benefits may not offset the possible loss of revenue, in
which case our business could be harmed.
Action by governments to restrict access to Facebook in their countries could substantially harm our business
and financial results.
It is possible that governments of one or more countries may seek to censor content available on Facebook
in their country, restrict access to Facebook from their country entirely, or impose other restrictions that may
affect the accessibility of Facebook in their country for an extended period of time or indefinitely. For example,
access to Facebook has been or is currently restricted in whole or in part in China, Iran, North Korea, and Syria.
In addition, governments in other countries may seek to restrict access to Facebook if they consider us to be in
violation of their laws. In the event that access to Facebook is restricted, in whole or in part, in one or more
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