NEW YORK (TheStreet) -- Shares of Facebook (FB) are falling by 0.4% to $82.57 on Friday after the company's European policy chief Richard Allan said that the social network is not offering its new photo app 'Moments' in Europe due to facial recognition concerns, according to The Wall Street Journal.
Earlier this week, Facebook launched its 'Moments' app, which allows users to privately share photos with friends without posting them onto Facebook. The people in the photos are then identified through facial recognition technology, the company stated.
Regulators in Europe who are concerned about the technology said that the social network must develop a way for users to opt-into its facial recognition feature, the Journal noted.
"We don't have an opt-in mechanism so it is turned off until we develop one," Allan said.
Additionally, nine privacy organizations including the American Civil Liberties Union and the Electronic Frontier Foundation withdrew earlier in the week from the talks with U.S. government agencies aimed at a "code of conduct" around facial recognition technology, the Journal reported.
"At a base minimum, people should be able to walk down a public street without fear that companies they've never heard of are tracking their every movement and identifying them by name," the group said in a joint statement.
Separately, TheStreet Ratings team rates FACEBOOK INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."