"While the previous policy of giving developers access to Facebook users’ friends’ data was sanctioned in the small print in Facebook’s terms and conditions, and users could block such data sharing by changing their settings, Parakilas said he believed the policy was problematic." (The Guardian.)
Is there any grammatical reason to use two apostrophes in the noun phrase Facebook users’ friends’ data?
Yes, there is. The data belongs to friends (plural), and the friends belong to users (plural).
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Yes, there is. The data belongs to friends (plural), and the friends belong to users (plural).