Monday, February 23, 2015

A Tale of Two Markets: Comparison for Good or for Evil

Of the initial 29 California Department of Motor Vehicle (DMV) self-driving car permits, Google’s 25 test permits out-distanced Audi and Daimler AG Mercedes-Benz that obtained two permits each. (Clark). Google’s concept car’s business objective exponentially more value than the auto companies’ was the “rolling data collection” factor: Registered vehicles have no identity protection allowing a constant occupant behavioral data collection and an impulse-driven broadcast potential that would rival the heady days of in-store Kmart Shopper Blue Light Special experiences. Target ranges for real-world application of self-driving cars range from 3 to 5 years to never, given the vast numbers of unmapped roadways and weather complexities that include Polar Vortex winter storms and resultant roadway potholes. Fleets of self-driving Herbie the Love Bugs are one thing Google, not likely to be encountered on the roadway, anytime soon.

Source: Business Insider

That’s not to suggest there isn’t already a host of Google products engaging with you. From a simple idea that everything connects, which can organized and analyzed that empowered Google Search, the company has extended its reach to geo-maps, Android mobile phones and other devices, drone-delivery, wearable technology with an optical head-mounted display, and health monitoring devices. Google still believes that data will flow through everything and “…if everything’s quantifiable and traceable, it wants to be the company that monetizes that. … Whatever serves to connect people to what they want also serves to educate Google’s giant artificial brain about what they want, enriching the data-stream on which advertising’s value depends.” (Burkeman)

The European Union and United States Markets reaction to online privacy erosion that Google’s strategic vision entails is a “Tale of Two Markets” like Dicken’s narrative tradition in that "It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity … [when] some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only. (Dickens)

Privacy in the European Union Market


Across European Union countries, citizens express concern they are losing control of how and why their personal data is being used. New privacy laws are expected to be enacted in 2015 that are expected to increase the enforcement powers of data regulators, potentially allowing them to sanction companies with fines of as much as $125 million for privacy violations. These new laws will strengthen already stringent 1995 EU privacy rules whose foundation was nation-state laws adopted in the 1970s. While European’s adopt new technologies and social media as robustly as Americans, these new laws and legal actions are being pushed by a new generation of computer techies, crusading bureaucrats, and privacy lawyers that could set a new global privacy standard against the unwieldy will of the Internet, seen by a growing number of Europeans, as a symbol of American Google hegemony the way Coca-Cola or McDonald’s or Disneyland have been to past generations. (Miller Llana)

“Yet all of Europe,” Claude Moraes, a member of European Parliament says, “agrees on one point that sets it apart from the US: If Americans value freedom of speech as an inalienable right that sometimes must trump privacy, in Europe the right to privacy is so fundamental that all national laws must consider it.” “The protection of personal data, and restricted use of data, and right of people to decide what can be done is one of the most fundamental principles of a democracy,” notes Spiros Simitis, who drafted Germany’s pioneering protection law. (Miller Llana)




                                                            Source: Truste

In Google vs Spain, which originated with an aggrieved calligrapher in Spain, the European Court of Justice in Luxembourg ruled that individuals have the right under the EU Data Protection Directive to request that personal data be removed from search engines such as Google, when a claimant proves to Google that the data has harmed them or, is no longer relevant, even without being outdated or inaccurate. Although world-wide media case reporting incorrectly termed the decision as the affirmation of a right to be “forgotten” online, the ruling has emboldened the EU privacy legislative movement and its demand for application worldwide. So far, Google has received more than 193,000 requests to be “forgotten” but has rejected 60 percent of the requests it has received. (Miller Llana)

Importantly, the court decision emphasizes that the right to be forgotten is nowhere to be found in the current EU legal framework, related to cases where information was legitimately published, so that its data protection law does not provide a right to eliminate truthful, but embarrassing information. The distinction is that a genuine right to be “forgotten," would provide a data subject the right to request the deletion of the data based on a whim, or a preference, while under this decision there are significant probative and argumentative efforts necessary for a claimant to prove to Google (or under appeal, later to a court) that such data is harmful and it violates personality rights. (Cofone)

Privacy in the United States Market


Uniform privacy protection policy and practice development has been delegated by the US Federal Trade Commission (FTC) to an industry group called the Tracking Protection Working Group − the World Wide Web Consortium (W3C). Charged with standardizing “Do Not Track” privacy rules that conceptually mirror FTC “Do Not Call” telephone regulations, it is staffed by industry experts but is dominated by Internet giants like Adobe, Apple, Facebook, Google and Yahoo.

Unlike Europe where privacy regulations are shaped by the passions of individual privacy advocates and regulators, in the US privacy policy has been shaped by industry influencers: Google, the company with the famous “Don’t be evil” motto spent $9.3 million for 2014 lobbying activities, making it the second-biggest spender after Dow Chemical. (Burkeman) The proposed rules that will require FTC adoption to require implementation, currently include a carve-out providing the largest Internet companies to continue mining data about “first party-relationship users” on their own sites and on other sites that include their plug-ins, such as Facebook's ''Like'' button or an embedded YouTube video. In contrast, companies with third-party relationships, which can arise if a user visits a site that integrates an advertisement with content from other sources, would not be able to place a tracking ''cookie'' for marketing purposes on a device without user consent. (Campbell, Jr.) Third-party capable advertising is concentrated in online publishing (e.g., news outlets) where most of the top 10,000 content providers could generate comparable revenue by switching to a “freemium” model, in which loyal site visitors are charged $2 (or less) per month. (Zervas)


The Future of Online Privacy Protection


According to a Harvard Business School study, the collection of individual user data provides half of the Internet’s economic value while e-commerce content relies at least partially, on paid advertising. The $42.8 billion spent on digital advertising in 2014, now exceeds broadcast television ad spend. Researchers Tim Hwang and Adi Kamdar have postulated the concept of “peak advertising,” where advertising reaches its maximum ROI effectiveness and then begins a slow decline, as evidenced by Google’s average cost-per-click ad rate has generally been falling since 2011. In 1994, the first online banner ad, was clicked by an astonishing 78% of its audience. Today for Facebook ads, click-though is one-20th of 1% which plays into the hand of huge firms like Google and Facebook that retain the worldwide distribution networks and massive datasets that can make advertising pay at all. (Campbell, Jr.)

Although security experts and tech leaders believe anonymity will be a bigger part of the digital future, I believe that in post- 9/11(2001) America, which is deeply entangled by Middle East warfare and potential homeland terror attacks, there is little legislative interest in protecting individual user privacy beyond those of protected groups like children protected under the Children's Online Privacy Protection Act. According to Nicole Wong, former Google and Twitter executive and White House advisor who helped author its report on how the massive collection of personal data online could affect the way people live and work, survey participants expressed concern about “that the [data prediction] algorithm will presume what people want, in a way that closes off opportunities for them - that there are opportunities they will simply never see.” (Sorcher) These questions go beyond the EU’s narrowly-focused concern over privacy to embrace equity and access questions that raise ethical concerns legislatures, technologists and the public must address over the way Google uses data and what is the right public policy outcome for the data’s use.

Individual American’s online privacy protection can not wait for unified industry or government action, rather individuals should consider taking the following self-protection measures today:

  • Become Informed: Publishers like The Christian Science Monitor have launched public education platforms like Passcode, a modern field guide to security and privacy, where its network of expert correspondents from around the globe will share their perspectives on cybersecurity and privacy to help make the Internet safe and secure.
  • Utilize Technology Options: Responding to backlash, tech giants such as Google, Apple and Yahoo have developed encryption technologies for their services like email. The Tor Project, an international group of researchers and technologists, maintain an Internet network in which all users are anonymous and their locations are hidden. Niche tech companies such as San Francisco-based BitTorrent which builds software so Internet users can keep their identities and data hidden and Chicago-based Guerrilla offers anonymous, disposable email accounts - have won over mainstream customers after once mainly serving tech geeks and cyber rabble-rousers. (Somerville)
  • Be Online Wisely: Since the backbone of the Internet was created through the federally funded Defense Advanced Research Projects Agency, the US government has been tracking Internet growth and usage, from its inception. The protection of individual anonymity rights in a platform pervasive with pornography, gambling, and which enables criminal intents and terrorism will likely be won only after the Digital Age enters its Second Generation of technology development as well as user sophistication and socialization.

 Sources.

Burkeman, Oliver (14 September 2014) Death, drones and driverless cars: how Google wants to control our lives. The Guardian-UK. [Website] Retrieved from http://www.theguardian.com/technology/2014/sep/22/what-does-google-want-glass-drones-self-driving-cars

Campbell Jr., Fred B. (27 December 2014) The Slow Death of 'Do Not Track'. The New York Times.

Cofone, Ignacio (Spring 2015) Google v. Spain: A Right To Be Forgotten? Chicago-Kent Journal of International and Comparative Law

Dickens, Charles (1859) A Tale of Two Cities. London: Chapman and Hall. Retrieved from http://www.archive.org/stream/adventuresofoliv00dickiala#page/n401/mode/2up

Miller Llana, Sara and de Pomereau, Isabelle. (16 January 2015) Europe pivots between safety and privacy online. Christian Science Monitor [Website] Retrieved from Retrieved from http://www.csmonitor.com/World/Europe/2015/0118/Europe-pivots-between-safety-and-privacy-online

Somerville, Heather (2 October 2014) Tech industry working to revive Internet anonymity; Companies creating ways for people to use the Web in privacy. The Tampa Tribune (Florida).

Sorcher, Sara Nicole Wong on how big data could change the way we live. Christian Science Monitor [Website] Retrieved from http://passcode.csmonitor.com/nicolewong

Zervas, George (26 January 2015) Do-Not-Track and the Economics of Third-Party Advertising. Boston University. Retrieved from http://www.bu.edu/hic/2015/01/26/georgos-zervas-do-not-track-and-the-economics-of-third-party-advertising/

No comments:

Post a Comment