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tbh it's a hard balance for any social media company.
Guard content too little and you end up with Cambridge Analytica, which was literally because the public APIs allowed too much access (third-party apps could see any data through the API that you could see through your Facebook account, including friends profiles). You also end up with headlines talking about big data leaks which really just end up being compilations of public data (which has happened to both Facebook and LinkedIn).
Guard content too much and you restrict users' freedom too much.
All the data gathered by Cambridge Analytica was gathered through the public API though, after users had consented to share it (by logging into a quiz app that requested the permissions). That's why the API is very locked down now, and the approval process to get any sort of data access is very strict.
The main issue was that they gathered data from people whose profiles were set to be visible only to friends. If someone logged into the quiz and granted permissions, their friends' data was also accessible via the API.