Some of the Internet's giants have recently joined forces against a U.S. of California bill proposal.
The main controversy is over a new part - Social networking privacy act:
The reason for this new section about social privacy is to enforce stricter privacy rules, thereby protecting the users of the social networks. Users under 18 years get a particular protection, as the social networking sites are obliged to remove personal information by request from the user's parents.
The reactions from the owners of social networks were strongly negative. A letter signed by Google, Facebook, Yahoo!, Twitter, Skype and several others, was sent to senator Ellen Corbett, who proposed the section. In the letter the underwriters argued:

The main issue here seems to be to choose between two different approaches towards privacy. To put it a bit bluntly, these alternatives
Each day we can read in the media about people who have experienced all kinds of problems because they have not been restrictive regarding how they share their personal information. These problems range from minor harassments on the one end, to economic disaster and identity theft on the other.
In our view, it is obvious that a default restrictive approach to public sharing of personal information will result in less information shared. Conscious choices to make personal information public will result in less information being public.
And that is probably the real problem seen from the social network companies' point of view. A social network's success depends on its ability to create strong community/communities among its users. This is much easier accomplished if more information about any member is available to other users of the community.
Additionally the marketing aspect should be considered. The ability to make successful marketing campaigns targeted special demographic groups, is obviously increasing the more information that is available to identify the members of that group.
In an interview with the Huffington Post, senator Corbett commented:
You’ll hear all sorts of characterizations made to confuse people on this measure. I’m up for a very tough fight. I have heard from so many people who are grateful that we’re trying to protect their privacy and security and protect young people from harm.
Privacy issues are increasingly focused upon. If this bill is passed in California, other states in U.S. as well as other countries may introduce similar legislations.
At the very least, the initiative from Senator Ellen Corbett have resulted in an increased awareness of privacy issues, which in itself is welcomed.