These past years have been focused on data protection due to the GDPR privacy laws such as the California Consumer Privacy Act. Today’s tech industry leaders have more or less understood this as they have positioned themselves as promoters and supporters of data protection. Could this be to push back the real data issue at hand…

Our data is the new Black Gold of the 21st century due to the increased everyday use of smartphones, IoT, and the Internet. As more and more devices connect to the Internet independently, the more data is created and stored. We have become cons-prod (data consumers and data producers) of data. This means that AI techniques and algorithms can be used by the data holders to extrapolate value from this data. In the Digital Era, industry giants and new players supporting their business model (Analytic engines for all types of data including textual, numerical, geospatial, structured, and unstructured …) and preparing their IPO’s can see and now also predict what their users are searching, buying and sharing. The increase in users creates attraction for others to do the same therefore increasing their data collection and using it to better understand and provide for their clients. This ability to observe their users, through the collected data, gives them the power to identify new products or services before they develop into potential threats. This advantage allows them to better control the competition.

In the early 20th century, Standard Oil was divided to avoid a power monopoly. Similarly, a call is being made to do the same to the current industry giants. However, this would not solve the dilemma, only postpone the inevitable. Antitrust authorities must explore new systems to assess the quantity of accessible data of each company to identify those using algorithms to influence users, collude over prices or worse control votes. Antitrust authorities should also increase transparency between the data holders and data providers. By making data accessible, with users’ consent, new opportunities were created and identified for wide spread growth. This has encouraged in Europe following the GDPR and also the CCPA (California Consumer Privacy Act) to form “Do Not Sell My Personal Information” provisions. Should we believe that these regulations are still, at this time, most likely not sufficient. We must understand that it is no longer exclusively a data protection problem but an issue of data concentration in the restricted hands of important players. Changing antitrust regulations on data use will take time and effort but in the end would be advantageous to all parties involved…

Rosenthal Law Firm is able to continue accompanying both industry giants and start-ups to face the challenges of data protection and, more specifically, the concentration of data.