Business Standard

HOW CALLS FOR PRIVACY MAY UPEND BUSINESS FOR FACEBOOK AND GOOGLE

- DAVID STREITFELD, NATASHA SINGER & STEVEN ERLANGER

People detail their interests and obsessions on Facebook and Google, generating a river of data that could be collected and harnessed for advertisin­g. The companies became very rich. Users seemed happy. Privacy was deemed obsolete, like bloodletti­ng and milkmen.

Now, the consumer surveillan­ce model underlying Facebook and Google’s free services is under siege from users, regulators and legislator­s on both sides of the Atlantic.

The recent revelation that Cambridge Analytica, a voter profiling company that had worked with Donald Trump’s presidenti­al campaign, harvested data from 50 million Facebook users, raised the current uproar, even if the origins lie as far back as the 2016 election. It has been many months of allegation­s and arguments that the internet in general and social media in particular are pulling society down instead of lifting it up. That has inspired a good deal of debate about more restrictiv­e futures for Facebook and Google. At the furthest extreme, some dream of the companies becoming public utilities. More benign business models that depend less on ads and more on subscripti­ons have been proposed, although it’s unclear why either company would abandon something that has made them so prosperous.

Congress might pass targeted legislatio­n to restrict consumer data use in specific sectors, such as a Senate bill that would require increased transparen­cy in online political advertisin­g, said Daniel J. Weitzner, director of the Internet Policy Research Initiative at the Massachuse­tts Institute of Technology. There are other avenues still, said Jascha KaykasWolf­f, the chief marketing officer of Mozilla, the nonprofit organisati­on behind the popular Firefox browser, including advertiser­s and large tech platforms collecting vastly less user data and still effectivel­y customizin­g ads to consumers. “They are just collecting all the data to try to find magic growth algorithms,” KaykasWolf­f said of online marketers. This past week, Mozilla halted its ads on Facebook, saying the firm’s default privacy settings allowed access to too much data.

The greatest likelihood is that the internet companies, frightened by the tumult, will accept a few more rules and work a little harder for transparen­cy. And there will be hearings on Capitol Hill. The next chapter is also set to play out not in Washington but in Europe, where regulators have already cracked down on privacy violations and are examining the role of data in online advertisin­g.

The Cambridge Analytica case, said Vera Jourova, the European Union commission­er for justice, consumers and gender equality, was not just a breach of private data. “This is much more serious, because here we witness the threat to democracy, to democratic plurality,” she said. Although many people had an understand­ing that free online services used their personal details to customize the ads they saw, the latest controvers­y starkly exposed the machinery. Consumers’ seemingly benign activities — their likes — could be used to covertly categorise and influence their behaviour. And not just by unknown third parties. Facebook itself has worked with presidenti­al campaigns on ad targetting, describing its services in a company case study as “influencin­g voters.” “People are upset that their data may have been used to secretly influence 2016 voters,” said Alessandro Acquisti, a professor of informatio­n technology and public policy at Carnegie Mellon University.

 ?? PHOTO: REUTERS ?? People leave the building which houses the offices of Cambridge Analytica as investigat­ors from Britain's Informatio­n Commission­ers Office entered, following the granting of a search warrant, in London on Friday
PHOTO: REUTERS People leave the building which houses the offices of Cambridge Analytica as investigat­ors from Britain's Informatio­n Commission­ers Office entered, following the granting of a search warrant, in London on Friday

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