Standing in the way is growing concern about privacy from Facebook users -- most recently complaints that the site forced them to share personal details with the rest of the online world.
Facebook responded to the backlash Wednesday by announcing it is simplifying its privacy controls and applying them retroactively, so users can protect the status updates and photos they have posted in the past.
"A lot of people are upset with us," CEO Mark Zuckerberg acknowledged at a news conference at Facebook's Palo Alto, Calif., headquarters.
The changes came after Facebook rolled out new features in April that spread its reach to the broader Web. Among them was a program called "instant personalization" that draws information from a person's profile to customized sites.
Privacy groups complained to regulators, and some people threatened to quit the site. Even struggling MySpace jumped in to capitalize on its rival's bad press by announcing a "new, simpler privacy setting."
To address complaints its settings were getting too complex, Facebook will give users the option of applying the same preferences to all their content, so that with one click you can decide whether to share things with just "friends" or with everyone.
It's not clear whether the changes will quell the unease among Facebook users, which has threatened to slow the site's breakneck evolution from a scrappy college network to an Internet powerhouse with nearly a half-billion people.
Some of Facebook's loudest critics offered cautious praise but indicated the young company will need to do more to prove it cares about privacy.
Sen. Charles Schumer called it a "significant first step that Facebook deserves credit for," but added he'd still prefer that Facebook require users to actively turn on sharing with outside sites, rather than having sharing be the default setting.