Governments struggle to tackle the might of the tech giants when it comes to protecting users’ data
Last month, the Irish data protection commissioner (DPC) sent Facebook a preliminary order ordering it to stop sending the data of its European users to the US. This was a big deal, because in order to comply with the ruling, Facebook would have to embark on a comprehensive re-engineering of its European operations, or to shut down those operations entirely, at least for a time.
Such a shutdown would of course be traumatic for the poor souls who are addicted to Facebook and Instagram, but it would be even worse for the company – for two reasons. The first is that it makes more money from European users’ data – an average of $13.21 (£10.19) per user in 2019 – than from any other territory except the US (where it earns $41.41 per user); the second is that failure to comply could land it with a fine of up to 4% of its global revenue, which in Facebook’s case would come to about $3bn. Given the scale of its revenues, that’s not a showstopper, but it would nevertheless be annoying.
Continue reading…Governments struggle to tackle the might of the tech giants when it comes to protecting users’ data Last month, the Irish data protection commissioner (DPC) sent Facebook a preliminary order ordering it to stop sending the data of its European users to the US. This was a big deal, because in order to comply with the ruling, Facebook would have to embark on a comprehensive re-engineering of its European operations, or to shut down those operations entirely, at least for a time.Such a shutdown would of course be traumatic for the poor souls who are addicted to Facebook and Instagram, but it would be even worse for the company – for two reasons. The first is that it makes more money from European users’ data – an average of $13.21 (£10.19) per user in 2019 – than from any other territory except the US (where it earns $41.41 per user); the second is that failure to comply could land it with a fine of up to 4% of its global revenue, which in Facebook’s case would come to about $3bn. Given the scale of its revenues, that’s not a showstopper, but it would nevertheless be annoying. Continue reading…