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> Facebook doesn't sell data

Of course they do, and they have for a while now. It's how they make money. In fact, they not only sell data they collect on your use of their service, they sell data based on information scraped by their persistent cookies as you browse other sites:

https://consumerist.com/2014/06/12/facebook-is-now-selling-y...

Better targeting for their ads is not selling data.

Isn't Facebook's entire business model essentially based on selling user data?

Selling targeted ads, targeting done by analysis of user data. According to FB: allowing user data to be leaked (which in turn allows for more directed individual targeting) was an oversight.

An API　is a method of data distribution whether I think it's a bad thing or not.