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Facebook and Zynga limit partnership

Social gaming company Zynga will no longer enjoy close ties with Facebook, as a new deal between the two firms places the developer on equal footing with its competitors.

The amendment of terms is predicated on a desire held by both companies to become less dependent on each other. This has led the Farmville developer to use its own website as a platform for its games. Facebook in turn has put an end to its preferential treatment of Zynga as a means of encouraging its other games providers and partners to create more content.

"We have streamlined our terms with Zynga so that's use of Facebook Platform is governed by the same policies as the rest of the ecosystem…we will continue to work with Zynga, just as we do with developers of all sizes," the social network said in a statement.

The revised agreement also allows Facebook to create its own games. However, a “person close to the company” told Reuters that the social giant "was not in the business of building games and we have no plans to do so".

The estrangement has had an adverse effect on Zynga, which saw its shares fall 13 per cent at the announcement of the new terms. This has compounded the firm’s general misfortunes, as it is still reeling from record losses that have led to drastic corporate restructuring.