Story image

Big Tech firms in the spotlight over data privacy

Data privacy is the biggest regulatory threat to Big Tech, according to a report from data and analytics firm Globaldata.

The company says Big Tech organisations such as Google, Amazon, Facebook and Apple (GAFA), will face regulation in 10 main areas over the coming years, with data privacy representing the main focus.

Big Tech companies have persistently evaded any form of accountability for data breaches, election manipulation, obstruction of justice, promotion of terrorist material, fake news, and online abuse, perpetrated through their own internet platforms, GlobalData’s latest report, Data privacy Thematic research, states.

“Once deemed consumer champions, Big Tech now appears to be the new dark side of capitalism, arguably presenting a bigger risk to society than bankers were in 2007,” says Laura Petrone, senior analyst for GlobalData.

“Public outrage at their actions is now forcing regulators to act.”

According to the report, after several years of regulatory missives emanating from the European Union (EU), US regulators are also initiating formal probes. 

“On both sides of the Atlantic, data privacy regulation is gaining prominence as the very future of the ad-funded business model that supports Facebook, Google, and many others is at stake,” Petrone says. 

“Even antitrust regulators are shifting their focus from investigating abuse of significant market power in product markets to investigating abuse of power when it comes to the control of customer data,” she explains.

Petrone says advertising companies and internet platforms will be the biggest losers from the increased regulation, as they rely on an advertising-funded revenues model which is inherently adverse to data privacy.

“Advertising-funded companies are forging pure ad business models for the collection, sale, and use of personal data, with a number of non-material costs for customers, as they are designed to optimize the users attention to the detriment of data privacy,” she explains. 

“While compliance costs for Big Tech are almost certain to rise in the short-medium term, these companies will still have a rosy future in the long run, thanks to their resources and ability to adapt.”

Story image
Schneider Electric, NetApp collaborate on HCI solution
The solution offers enterprise-scale hybrid cloud capabilities to help businesses transform their data centers and empower them to drive efficiencies while reducing operating costs.More
Story image
14 Oct
You're invited: VeeamON Virtual brings the conference to you
VeeamON Virtual will look like a physical event, but it all takes place online.More
Link image
Kubernetes Explained! New Video - how it works and business benefits
With the rapid growth in multi-cloud use internationally, watch this video to find out why Kubernetes is becoming vital to New Zealand businesses, brought to Aotearoa by home-grown Catalyst CloudMore
Story image
24 Sep
You're invited to QNAP 2020 TechDay: Leveraging digital technologies to transform your business
QNAP 2020 TechDay will demonstrate its latest technologies to help businesses succeed in digital transformation, and to help them realise the near-limitless potential of future IT trends.More
Story image
‘Be data ready’: Breaking buzzwords with Chris Powell of Commvault
At the recent Commvault GO event in Denver, Techday sat down with Chris Powell, Commvault chief marketing officer, to discuss why the company has adopted the slogan ‘be data ready’ and how it’s new offerings reflect this philosophy.More
Story image
You're invited: Get to know Agile with Assurity's Summer School programme
Assurity crafted summer school programmes that are intensive workshops that cover agile – and all it takes it two or three days of training.More