{"id":585721,"date":"2023-04-27T00:00:00","date_gmt":"2023-04-27T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/27\/legislation-and-advertising-practices-are-bringing-winds-of-change-for-user-data-commodification\/"},"modified":"2023-04-27T00:00:00","modified_gmt":"2023-04-27T00:00:00","slug":"legislation-and-advertising-practices-are-bringing-winds-of-change-for-user-data-commodification","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/27\/legislation-and-advertising-practices-are-bringing-winds-of-change-for-user-data-commodification\/","title":{"rendered":"Legislation and advertising practices are bringing winds of change for user data commodification"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"\"> <\/span><span style=\"font-weight:700\">Is the end of surveillance capitalism on the horizon?<\/span><span style=\"\"> The commodification of users\u2019<\/span><span> personal data has underpinned the revenue streams of tech companies for years. Personalized ads \u2014 which leverage detailed information about digital behaviors, such as what Instagram videos users stop scrolling to see or what links they click on Facebook \u2014 have earned Meta alone USD 118 bn in revenue in 2021, according to the<\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/www.nytimes.com\/2023\/01\/04\/technology\/meta-facebook-eu-gdpr.html\" style=\"\">New York Times<\/a><\/span><span>. This digital culture of<\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/news.harvard.edu\/gazette\/story\/2019\/03\/harvard-professor-says-surveillance-capitalism-is-undermining-democracy\/\" style=\"\">surveillance capitalism<\/a><\/span><span> \u2014<\/span><span> a term coined by American author and Harvard professor Shoshana Zuboff in 2014 \u2014 has long raised ethical concerns about <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b50167ee-1777-4d61-a9a9-480f30972c6e\" style=\"\">infringing upon<\/a><\/span><span style=\"font-weight:400;\"> privacy, democracy, and autonomy. But recent changes in legislation and advertising practices in some jurisdictions suggest a partial shift away from the non-consensual use of personal data.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">The winds of change are blowing hard Meta\u2019s way:<\/span><span style=\"\"> On 4 January, EU regulators <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/www.dataprotection.ie\/en\/news-media\/data-protection-commission-announces-conclusion-two-inquiries-meta-ireland\" style=\"\">fined Meta<\/a><\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/www.dataprotection.ie\/en\/news-media\/data-protection-commission-announces-conclusion-two-inquiries-meta-ireland\" style=\"\">USD 414 mn<\/a><\/span><span> for violating the EU\u2019s General Data Protection Regulation (GDPR), ruling that the tech giant had illegally forced users to accept personalized ads by bundling them with lengthy terms of service. The judgment, which demanded that Meta remodel its advertising approach, jeopardizes 5-7% of the company\u2019s overall advertising revenue. \u201cIt is the beginning of the end <\/span><span>of the data<\/span><span> freeforall,\u201d privacy activist Johnny Ryan told<\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/www.wired.com\/story\/meta-surveillance-capitalism\/\" style=\"\">Wired<\/a><\/span><span style=\"font-weight:400;\">.  <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Apple is spinning its own storm:<\/span><span style=\"\"> In 2021, the company rolled out a new feature that explicitly<\/span><span> asks iPhone users if they want their data to be tracked by mobile applications for personalized ads. The new policy impinged on the revenues of firms that rely on user data for advertising, most notably Meta, which in February 2022 <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/s21.q4cdn.com\/399680738\/files\/doc_financials\/2021\/q4\/Meta-Q4-2021-Earnings-Call-Transcript.pdf\" style=\"\">said in its earnings call (pdf)<\/a><\/span><span style=\"font-weight:400;\"> that Apple\u2019s move could have a \u201csignificant headwind\u201d of around USD 10 bn to its business. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">And Google is baking a new cookie strategy:<\/span><span style=\"\"> The tech giant intends to begin<\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/blog.google\/products\/chrome\/update-testing-privacy-sandbox-web\/\" style=\"\">phasing out<\/a><\/span><span> Chrome\u2019s third-party cookies in 2H 2024 as part of its wider<\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/privacysandbox.com\/\" style=\"\">Privacy Sandbox<\/a><\/span><span style=\"font-weight:400;\"> initiative, which seeks to create standards for websites to track user data without compromising privacy. Third-party cookies, like their more benign first-party counterparts, are small packets of information that websites store on a user\u2019s computer by tracking their browsing activity. But while first-party cookies help streamline the user experience by remembering useful data such as log-in credentials, language preferences, or shopping cart items, third-party cookies are predominantly created by advertisers (the third party) to deliver targeted ads. Google\u2019s endeavor follows moves by Safari, Firefox, and Brave, all of which have been blocking third-party cookies for years.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Not so fast, Google:<\/span><span style=\"\"> The firm\u2019s cookie-killing plan involves a replacement named<\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/blog.google\/products\/chrome\/get-know-new-topics-api-privacy-sandbox\/\" style=\"\">Topics<\/a><\/span><span style=\"\">, a new<\/span><span> system that analyzes browsing history to share topics that interest the user, such as fitness or travel, with websites and their advertising partners. The system purportedly gives the user more privacy and control by concealing the specific websites they\u2019ve visited and enabling them to remove assigned topics or disable the feature entirely. However, Topics doesn\u2019t completely rule out the risk of websites uncovering personal data. \u201cIt is still possible that websites calling the API may combine or correlate topics with other signals to infer sensitive information, outside of intended use,\u201d <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/privacysandbox.com\/proposals\/topics\/\" style=\"\">Google<\/a><\/span><span style=\"font-weight:400;\"> says.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Surveillance capitalism is more rampant than it seems.<\/span><span style=\"\"> \u201cThis economic logic has now<\/span><span> spread beyond the tech companies to \u2026 virtually every economic sector, from ins. to automobiles to health, education, finance, to every product described as \u2018smart\u2019 and every service described as \u2018personalized,\u2019\u201d Zuboff told the<\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/news.harvard.edu\/gazette\/story\/2019\/03\/harvard-professor-says-surveillance-capitalism-is-undermining-democracy\/\" style=\"\">Harvard Gazette<\/a><\/span><span>. For instance, CPAP machines \u2014 breathing devices that assist patients with sleep disorders \u2014 send usage data to health insurers, which<\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/www.propublica.org\/article\/you-snooze-you-lose-insurers-make-the-old-adage-literally-true\" style=\"\">deny insurance payments<\/a><\/span><span> to patients who don\u2019t use the machine. Giant US retailer Target, meanwhile, has figured out how to<\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/www.nytimes.com\/2012\/02\/19\/magazine\/shopping-habits.html?pagewanted=1&_r=1&hp\" style=\"\">analyze historical buying data<\/a><\/span><span style=\"font-weight:400;\"> to find out when a woman is pregnant in order to sell baby merchandise.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">The future remains uncertain.<\/span><span style=\"\"> While some advocate for an opt-in economy that lets users<\/span><span> choose who their data is shared with, others endorse tracker-free contextual advertising that displays ads where they are likely to be of interest, such as a VW ad embedded in an article about cars, Wired writes. The EU ruling against Meta and progress by tech companies in soliciting user consent are significant milestones that may help rein in surveillance capitalism, \u201c[b]ut with personalized ads being proposed as part of an alternative system, what comes next might not look that different,\u201d says Wired.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Personal data has turned into a commodity in and of itself<\/p>\n","protected":false},"author":1,"featured_media":585722,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9197],"tags":[184,901,7017,633,7198],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-585721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data-privacy","tag-apple","tag-data","tag-data-privacy","tag-enterprisepm","tag-meta","wpautop","entry"],"acf":{"mongo_id":"7be57418-ffd5-4fab-9cdd-3d94dd50cbfe","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/4\/923.jpg","photo_position":"above","homepage_title":"","full_issue_title":"","related_issue":[585703],"teaser":"Personal data has turned into a commodity in and of itself","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/4\/.1548e135-a410-4d65-b9ac-87135c574bb1.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Legislation and advertising practices are bringing winds of change for user data commodification - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2023\/04\/27\/legislation-and-advertising-practices-are-bringing-winds-of-change-for-user-data-commodification\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Legislation and advertising practices are bringing winds of change for user data 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