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Ottawa, May 26 (Canadian-Media): European Union’s General Data Protection Regulation (GPDR), which came into effect on Friday, as a defining moment for the digital economy, are a complex set of laws, said Data-privacy advocates, which empowers users more control over their personal information and check Big Tech companies to track users across the web, media reports said.
GDPR. Image credit: Pixaby
But others warn that the rules would reportedly further allow social-media giants Facebook and Google to consolidate their digital power.
Investors ar have been keeping a close watch on what the rules will mean for digital advertising by Google and Facebook.
Many changes have been put forth by these to comply with the new law such as privacy features, to users outside of Europe as well.
Dave Wehner, Facebook chief financial officer, expressed his concerns last month, that European user base of Facebook’s could decline after the GDPR comes into effect.
According to estimates of financial analysts, if users start denying permission to access their data, both firms could suffer a loss of billions in advertising income.
Regulators and activists who reportedly are keen to make big tech companies a test case for the new rules would reportedly be the biggest risk to Google and Facebook
Google and Facebook, which last year captured more than 80 percent of the growth in digital advertising, “are surely going to be on everyone’s list,” David Martin Ruiz, senior legal officer for the European Consumer Organisation, an umbrella group of consumer watchdogs, said
U.S. privacy activists are planning to work with their European counterparts to focus attention on U.S. companies operating across the EU, said Jeff Chester, executive director of the Center for Digital Democracy, a Washington-based non-profit.
Tech companies “think they can get away with their business model without changing their practices,” he said. “This is going to be a serious war that will soon ensue.”
Many are also concerned that instead reducing the power of Big Tech, GDPR might allow social-media giants to extend their dominance over the digital-advertising market by favoring its own data-gathering capabilities,
“They literally have dominance over the entire supply chain in a way that you don’t see in other unregulated markets,” said Jason Kint, CEO of one of the trade organizations, Digital Content Next.
“Facebook has just become the biggest data broker in the history of humanity,” John Battelle, a digital advertising executive and co-founder of Wired Magazine, wrote on his blog. “It just doesn’t want you to know that.”
New restrictions had been posed by Google on advertisers to export some user data needed to measure the effectiveness of ad campaigns across multiple platforms, while it is still allowing markers to use that same data in Google’s own in-house ad measurement tools.
Google told publishers it was changing its policies around user consent for Google’s advertising services.
Publishers are now required to get consent on Google’s behalf and have been left with very little choice but to try to work with Google, since the company controls so much of the online-advertising business.
(Reporting by Asha Bajaj)