How do privacy laws strengthen Facebook and Google?

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San Francisco – in Europe and the United States, the conventional wisdom is that regulation is needed to force silicon valley’s digital giants to respect people’s online privacy.
But the new rules could strengthen Facebook and Google and extend its lead over the Internet.
That could come into effect next month, when Europe issued a raft of new rules that give priority to data privacy. The new law requires technology companies to ask users to agree to their data, which could give Google and Facebook an edge. This is because cautious consumers are more likely than strangers to trust accepted names and their information. The law may prevent start-ups that do not have the resources to follow the rules to compete with big companies.
In recent years, other regulatory measures to strengthen online privacy rules have had little impact on the power of the biggest tech companies, ultimately helping the Internet giants rather than hurting them.
“Regulations help established companies,” says Avi Goldfarb, a marketing professor at the university of Toronto, who has studied the impact of privacy regulations on competition. Mr Goldfarb is one of the 2013, co-author of the report, he said privacy may be anticompetitive, because the user’s data permission from young company is usually more than the cost of company.
Facebook and Google could get stronger from these, and it may seem a long way off. Silicon valley companies for months has been people’s data collection and use of censorship, Facebook for revealing political research firm analysis of Cambridge companies reap the personal information of its users is as high as 87 million. That led congress to drag mark zuckerberg, Facebook’s chief executive, to Washington for a barbecue this month.
Google also in dealing with the problems about its YouTube video service online, because it is trying to attract worried that the search giant’s data collection machine powerful lawmakers like Facebook, if not.
Meanwhile, countries such as Brazil and Argentina are exploring european-style privacy laws that will further test their advertising business models. In Mr Zuckerberg’s testimony this month, us lawmakers have also been more open about managing silicon valley.
In the past, however, attempts to regulate privacy have done little to reduce the power of technology companies. Consider earlier attempts to check Facebook, GuGe and other people’s power in Europe.

In 2014, the European Supreme Court ruled that people had “right to be forgotten” on the Internet, meaning they could ask Google and other digital companies to delete their search results. Since then, Google has become the chief arbiter, as the company itself is responsible for determining the fate of each deletion request.
In 2011 another European law requires sites to remind visitors to collect data about the browsing history of “cookies” trackers, largely become distracting the worry, not change the way companies operate. People are usually followed up to get rid of pop-up warnings and not read the details of the trace.
Today, the outcry over data privacy has not reduced the business or use of Facebook and GuGe. Mr Zuckerberg said this month that the Cambridge Analytica scandal had no material impact on Facebook’s business, and it is expected to show sales growth when it reports quarterly earnings this week. Alphabet, the parent company of Google, said on Monday that its revenue grew 26 percent in the most recent quarter as its advertising business continued to grow.
Spokesmen for Facebook and Google declined to comment.
In Europe, future data privacy laws are called “universal data protection regulations”. The rules will limit how technology companies collect, store and use personal data from people in the area. The law comes into effect on May 25, requiring companies to explain how to simple and clear language they intend to use people’s personal information, and other entities can access the data in detail. Companies can no longer hide behind complex, often overlooked user agreements, but they must get a complete understanding of their data before they can agree.
Lawyers for privacy laws, consultants and companies say that controlling big technology companies is not the main goal of European legislation.
Some privacy advocates of the new restrictions would also help has powerful Internet company interested, they point out that this is a technology giant is used to prevent future regulation of the old arguments.
But Nicolas Colin, co-founder and director of the paris-based startup accelerator family, argues that “people tend to grant licenses to companies they trust.” He says “tougher rules strengthen companies because they have a key asset to trust. ”
European privacy law may restrict the flow of personal data to suppress the target advertising, but companies like Google and Facebook are still have an advantage, because advertisers are likely to turn to have coverage and large audience services – like buying advertising during the super bowl. Facebook has more than 2.2 billion monthly users, and GuGe has 1.5 billion YouTube users.
Giovanni Buttarelli, European head of data protection for privacy rules, says most of the impact will depend on the regulatory bodies that make up the law, as well as with well-funded lobbyists and lawyers. Google and Facebook will be overseen by the Irish data management agency, which is based in Ireland. Mr Buttarelli notes that Europe has about 2,500 staff members in all countries dealing with the problem.

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