How Looming Privacy Regulations May Strengthen Facebook and Google: In Europe and the United States, the general wisdom is that regulation is required to force Silicon Valley’s digital titans to respect people’s online privacy. But new rules may instead serve to strengthen Facebook’s and Google’s hegemony and extend their lead on the internet.(also read, 5 Best VPN for Facebook, Twitter, Instagram, YouTube)
How Looming Privacy Regulations May Strengthen Facebook and Google
The Call For Privacy Regulations
That could begin playing out this month when Europe constitutes sweeping new regulations that prioritize users’ data privacy. This new law, which demands tech companies to require for users’ consent for their data; are expected to hand Google and Facebook an edge. That’s because cautious consumers are more likely to trust known names with their data than unknown newcomers. And the laws may prevent start-ups that do not have the support to comply with the laws from racing with the influential companies.
In recent years, other administrative attempts at establishing online privacy laws; have also had little impact at chipping away at the strength of the most substantial tech companies; conclusively aiding internet behemoths rather than hurting them.
Facebook and Google may arise stronger from all of this can look like a distant probability. The Silicon Valley firms have been under inspection for months for the way they accumulate and utilize people’s data; with Facebook rolling from disclosures that the political research firm Cambridge Analytica collected the personal information of up to 87 million of its users. That drove Congress to drag Mark Zuckerberg, Facebook’s chief executive; to Washington last month for a grilling.
Google Is Under Scrutiny Too
Google, too, has engaged with inquiries about its online video service YouTube; as it attempts to elude lawmakers who dread that the search giant’s data-collection tools are as robust as Facebook’s; if not more so.
At the same time, nations like Brazil and Argentina are searching European-style privacy laws that will more test the companies’ advertising-based business standards. United States legislators also conferred more openness to monitoring Silicon Valley during Mr Zuckerberg’s testimony last month. Read on to know about How Looming Privacy Regulations May Strengthen Facebook and Google.
Yet past efforts at privacy regulation have done inconsiderable to alleviate the power of tech giants. Consider what happened in Europe after earlier trials at checking the power of Facebook, Google, and others.
In 2014, Europe’s highest court decreed that people had the “right to be forgotten” online; indicating they could require Google and other digital companies to remove search results about them. Since then, Google has alternatively become a chief judge of what data is kept online in Europe; because the company itself is liable for resolving the fate of each deletion request.
Various startup owners are finding it challenging to compete with companies such as Google; just because they do not hold the “trust” factor when it comes to asking consent from its users. Stringent rules will only give incentive to tech giants by restricting the resources and capabilities of new companies.
European New Privacy Laws
The European privacy law will likely clamp down targeted advertising by putting brakes on the flow of user data. But companies like Facebook and Google will have an advantage; as advertisers will move to them because of their reach and trust factor.
If these laws are enacted, Facebook and Google will find themselves in the hot seat; charging advertisers at their will. The stats are mind-boggling. Google’s YouTube tops in video content category with 1.5 billion monthly users and Facebook has over 2.2 billion monthly users on its platform.
The data protection supervisor of Europe; Giovanni Buttarelli, said that the regulators are determined to enact a law that will provide enhanced online data privacy rights. Buttarelli should be more interested in keeping terrorists out of their countries, but that would make too much sense.
He said that the lawmakers are up against well-funded lobbyists and lawyers. Facebook and Google will be under the lens of Irish data authority; as the European headquarters for these matters are in Ireland. A staff of 2,500 across European Council is working on data privacy rights.
The supervisor accepted that the tech giants do have an advantage over the small and medium-sized businesses. But he also ensured that the big firms aren’t immune and will face detailed scrutiny by the European Union members.
EndNote -How Looming Privacy Regulations May Strengthen Facebook and Google
Facebook recently launched a new consent document asking its users globally to accept or reject targeted advertising. This move by Facebook is to allow features such as face recognition on its platform. It has also limited its collaboration with data brokers like Acxiom, as a consolation for privacy fighters.
Meanwhile, Google, which over the years has been preparing for the new privacy laws; has halted its work of scanning Gmail email messages for targeted keywords.
Previously, it used to provide this analytics to advertisers as part of its revenue generation model. Recently, it came out with a new marketing product for content publishers that show advertisements based on descriptions of other articles or content on a website; instead of supplying personal information.
