2023 was certainly an eventful year for the technology industry. Generative AI has become mainstream thanks to software like ChatGPT, to name a few key moments. We had to say goodbye to the iconic bluebird while welcoming Twitter’s new name (for the past six months, we’ve been writing it as “X (formerly known as Twitter)” I know the pain.) Big technology companies were fined the most for data abuse under the GDPR, totaling more than $3 billion.
Well, on the latter point, the efforts of data protection regulators have turned out to be less effective than expected.
Just one week into 2024, Swiss privacy company Proton, which offers popular email and VPN services, has generated enough revenue for Meta, Google, Apple, Microsoft and others to pay off last year’s fines in full. reported. Let’s take a look at what needs to change and, most importantly, what you can do in the meantime to truly protect your privacy.
Ineffective data protection fines
“What is clear is that while these fines may seem huge, they are actually just a drop in the ocean when it comes to the revenue that tech giants are making. In other words, they are not a lot of money. It’s not a deterrent at all,” Jurgita Miseviciute, head of public policy and government at Proton, told me.
Proton researchers calculated that Alphabet (Google’s parent company) would need just over a day to pay off its $941 million fine. Amazon and Apple’s profits in just a few hours are enough to repay data protection sanctions of $111.7 million and $186.4 million, respectively.
Meanwhile, Meta, the largest perpetrator of data abuse, was fined a record $1.3 billion for its crimes (mistake) processed EU user data last May and were able to raise all the funds they needed in just about 5 business days.
If you think #BigTech will be hit with huge fines, think again. @Google, @Apple, @Meta, @Amazon, @Microsoft made enough revenue in the past 7 days to pay off his 2023 fine. Exploiting privacy is so lucrative that these fines are just a cost… pic.twitter.com/cGprAwS0hoJanuary 8, 2024
These findings demonstrate that, as Proton founder and CEO Andy Yen said, data regulator fines are not a deterrent to the misuse of user data, but rather that “these companies “It’s about the same as small change.” Not only that, but “these small fines essentially give big tech a green light to run riot in a market that is skewed in their favor,” he said.
It’s also common for big tech companies to appeal these sanctions or simply refuse to pay, delaying repayments for years. Take, for example, Google’s challenge to India’s fine for an Android-related investigation that began in 2019 for abusing its dominant market position.
In this regard, Yen said, “It is the average consumer who is losing out, facing higher prices, fewer choices, and loss of privacy. This has to stop, not profits. We need real, concrete change that puts people first.”
According to Mrs. Vicciute, two main things have to happen for things to really change.
Did you know that?
Fully implemented in May 2023, EU Digital Market Law (DMA) It imposed new obligations on technology companies to ensure fair competition and protect people’s digital rights.A similar bill, the so-called Digital Markets, Consumers and Competition Bill (DMCC) It is currently being passed by the British Parliament.
First and foremost, she believes the government needs to: Fines with real economic consequences To compete against big monopolies.
“That’s why violations of laws such as the EU’s DMA can result in fines of up to 20% of global revenue.” [Digital Market Act] Up to 10% for proposed DMCC [Digital Markets, Competition and Consumers] Bill in the UK is a step in the right direction,” she told me.
Even though heavier sanctions are important, they are not the whole story. Ms. Vicciuto explained that regulators need to: Combine these with practical measures For example, forced behavioral and structural changes.
Again, she believes that the EU is in a very good position to do so thanks to the new powers gained by the DMA. However, there are some small steps in this direction elsewhere.
“We hope that the Google antitrust case in the United States will be a catalyst for comprehensive antitrust regulation across the Atlantic, as well as in South Korea, Japan, Australia, and other major jurisdictions.” I think we can expect further development,” she told me.
“Opening up the market and giving innovators like Proton a chance to succeed will result in more private and more secure solutions for consumers.”
How to protect your online privacy
As we’ve seen, 2023 was another tough year for online privacy.
For example, the United States does not yet have a federal data protection law in place, and the proposed ADPPA is stalled at the time of writing. India’s new privacy law, which came into effect in August last year, was heavily criticized for favoring the government and big tech companies rather than citizens. Even in regions where strong laws are said to be in place, such as the EU, it seems that the law still does not have enough teeth.
On this point, Mr. Miseviciute told me: “Until laws like the EU’s DMA and the UK’s proposed DMCC are effectively enforced, we will live in a world where big tech companies control the internet and our privacy will be compromised. Everything will be left to the administrators,” at the mercy of their surveillance capitalism business model. ”
Did you know that?
Two-thirds of Brits would rather lose their passport than access their email account. However, despite these concerns, most of them lack the knowledge and tools necessary to protect their digital privacy. Big Tech knows this, researchers have revealed.
The silver lining to this bleak scenario is that it’s ultimately our choice whether to continue using data-intensive products. Fortunately, several small businesses offer privacy-first alternatives that you can switch to.
Proton, for its part, appears to be working hard to keep Google out of our digital lives. As well as its popular services, the Swiss-based provider offers encrypted email service Proton Mail (which beat out big tech companies by releasing a standalone desktop app in December), a secure calendar, and its own We also offer cloud storage Proton Drive.
Proton’s products also include the best virtual private network app on the market (Proton VPN) to help you stay anonymous while browsing, and a password manager tool (Proton Pass) to protect all your login details. It’s even better because all providers’ services come with both free and paid plans.
However, Proton is just one of many companies developing privacy-first alternatives to big tech software. It’s worth mentioning that if you want to replace WhatsApp with a more secure application, you can also use the encrypted messaging app Signal and the Mullvad browser to switch from Safari or Chrome.
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