Facebook has removed access to legitimate applications such as Apply Magic Sauce due to the backlash from the Cambridge Analytica scandal. Unfortunately, when a negative event occurs the corporate response is typically one that overshoots and overcorrects, a ham-fisted approach (Hulk smash!) rather than a logical, methodical approach. Rather than take the time to educate the public, it’s less expensive and easier for companies to fold under pressure. Facebook will undoubtedly survive the public backlash. However, the backlash is not without casualties. Smaller companies that have built businesses on top of platforms like Facebook suffer.

Case in point, Apply Magic Sauce, which I considered embedding into our former insurtech product, “Identity Hub” (read about Apply Magic Sauce in today’s WSJ). I was fascinated by Apply Magic Sauce’s application which predicted certain personality attributes based upon one’s Facebook “likes”. Users were required to opt-in to Apply Magic Sauce. There was nothing nefarious about it. We decided to pass on integrating the application as the use case we envisioned (predictive fraud analytics) wasn’t one that was top-of-mind with P&C insurance companies.

Here’s to hoping that Facebook exercises precision in determining which third party applications to shut off.