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Introduction: A Decade-Old Data Scandal Resurfaces With a New Spark
A recent viral post on social media has reignited a long-dormant controversy involving Facebook, data privacy, and a little-known VPN app called Onavo Protect. The post outlines how Facebook allegedly exploited this Israeli-developed app to siphon mobile user data from over 33 million devices—without proper disclosure. The goal? To spy on competitors like Snapchat, paving the way for Facebook’s massive acquisitions and product decisions, including the \$19 billion WhatsApp deal and the launch of Instagram Stories.
Elon Musk, a vocal advocate of online privacy and Big Tech accountability, reacted to the post with a single word: “Whoa.” His reaction has thrown a spotlight back on the ethics of Facebook’s data practices, rekindling debate over what companies really do with the data we trade for “free” services.
What Happened: A the Onavo Scandal
Back in 2013, Facebook quietly acquired Onavo, an Israeli company offering a Virtual Private Network (VPN) service named Onavo Protect. The app promised to safeguard users’ browsing data, but under the surface, it was a data goldmine for Facebook. Unlike traditional VPNs that encrypt and obscure data to enhance user privacy, Onavo reportedly funneled that traffic straight into Facebook’s analytics engine.
By using Onavo, users unknowingly handed over detailed records of their mobile behavior. If someone spent two hours a day on Twitter, Facebook would know. If another person was heavily engaged on Snapchat, Facebook could measure that in real time. This surveillance gave Facebook an extraordinary competitive advantage, allowing it to assess the threat level of rising apps and services. According to the viral post, this intelligence played a role in Facebook’s decision to acquire WhatsApp and to launch features mimicking Snapchat, such as Instagram Stories.
Despite growing criticism, the app remained available for several years, and it wasn’t until 2019 that Facebook formally announced Onavo’s shutdown. Critics, including Apple blogger John Gruber, went as far as labeling it “spyware.” The core of the backlash wasn’t just about data collection—it was about deceptive disclosure. Onavo’s App Store listing barely mentioned its link to Facebook unless users clicked “Read More,” leaving millions unaware they were handing their data to a tech giant with a controversial track record on privacy.
What Undercode Say: Facebook’s Playbook of Data-Driven Domination
The Onavo episode reveals a disturbing playbook employed by Facebook during its meteoric rise to dominance: acquire, monitor, mimic, and neutralize. What made Onavo so valuable wasn’t its VPN functionality—it was the stealth surveillance it enabled. While users believed they were increasing their online privacy, they were, in fact, feeding Facebook with granular insights into their habits, preferences, and app usage.
This isn’t just an old scandal resurfacing; it’s a blueprint of how data can be weaponized. The app’s free pricing was a calculated trade: no monetary fee, but full access to behavioral data. The genius—and the ethical failure—was in the app’s positioning. Onavo was marketed as protection, but it acted as a probe. That level of intelligence allowed Facebook to predict trends before the public saw them, ultimately influencing its decision to buy WhatsApp before it could become a real threat, or launch Instagram Stories to undercut Snapchat’s appeal.
From an antitrust perspective, this could be seen as predatory surveillance. It’s not just that Facebook watched what users did—it watched what they did on other platforms, then used that data to squash rivals. This cuts to the heart of modern digital ethics. Should a tech giant be allowed to spy on users using a Trojan Horse masquerading as a privacy tool? The answer, increasingly, is no.
Musk’s one-word response—“Whoa”—captures the disbelief that many feel when discovering the full scope of Facebook’s tactics. As a tech entrepreneur who champions open AI and transparency, Musk’s surprise may be more than just a reaction; it might be a signal to reevaluate the guardrails we place on corporate data collection.
In hindsight, Facebook’s acquisition of Onavo wasn’t just strategic—it was surgical. It enabled precise tracking of user migration between platforms. And that might have shifted the fate of entire markets. Imagine if WhatsApp had grown unfettered. Imagine if Snapchat had retained its edge. We could be looking at a very different social media ecosystem today.
The ultimate lesson? Free apps aren’t free. If you’re not paying with money, you’re likely paying with something far more valuable: your data.
🔍 Fact Checker Results
✅ Facebook did acquire Onavo in 2013 and ran the Onavo Protect VPN until 2019.
✅ Onavo was available for free and collected user mobile traffic data.
✅ The app’s App Store listing hid Facebook ownership behind the “Read More” section, raising transparency issues.
📊 Prediction: The Next Wave of Data Transparency Reckonings
As regulators tighten their grip on tech giants, we predict that historical data practices like Facebook’s Onavo gambit will become central to antitrust lawsuits and regulatory reforms. Expect to see more scrutiny of past acquisitions based on how companies gathered competitive intelligence. If new revelations continue surfacing, Facebook (now Meta) could face renewed investigations, and future privacy laws may outlaw such disguised surveillance models altogether. Tech firms will be forced to build transparency not just into their user interfaces—but into their business DNA.
🕵️📝✔️Let’s dive deep and fact‑check.
References:
Reported By: timesofindia.indiatimes.com
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