{"id":39703,"date":"2017-12-17T07:12:28","date_gmt":"2017-12-17T07:12:28","guid":{"rendered":"http:\/\/www.bnreport.com\/tough-times-for-big-tech-except-where-it-counts\/"},"modified":"2017-12-17T07:12:28","modified_gmt":"2017-12-17T07:12:28","slug":"tough-times-for-big-tech-except-where-it-counts","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/tough-times-for-big-tech-except-where-it-counts\/","title":{"rendered":"Tough times for Big Tech \u2014 except where it counts"},"content":{"rendered":"

LONDON \u2014 It sure looks like it\u2019s been a bad year for Big Tech.<\/p>\n

Europe\u2019s antitrust enforcers have doled out<\/a> multibillion euro fines, politicians have questioned whether tech companies pay their fair share in tax<\/a>, and lawmakers have raised increasingly uncomfortable questions about social media\u2019s role<\/a> in elections worldwide. It would be little wonder, then, if Facebook, Google and Amazon were ending 2017 with their reputations far more tarnished than when the year started.<\/p>\n

And yet, there\u2019s no sign that anything like that has happened.<\/p>\n

Policymakers in Brussels, Washington and elsewhere have been busy ratcheting up the rhetoric (and, increasingly, fines) against many of the tech giants. But the majority of people who use their services \u2014 not to mention the global investors who buy and sell their shares \u2014 have responded with a collective digital shrug.<\/p>\n

The stock prices of Alphabet (the parent company of Google), Amazon and Apple continue to hit all-time highs, making them some of the world\u2019s most valuable companies. And the public still prefers these digital brands to the lawmakers trying to bring them to heel (and, yes, that includes Margrethe Vestager, the European Commission\u2019s competition czar who has become the face<\/a> of much of the global regulatory pushback against Big Tech).<\/p>\n

\n

The inability of regulators to curb either the economic or social clout of these digital companies doesn\u2019t mean that Big Tech got its way all year.<\/p>\n<\/blockquote>\n

Poll after poll shows<\/a> that while people are beginning to grow wary of the tech giants\u2019 dominant (and, increasingly, entrenched) positions, they still feel they get more from the digital world than it takes from them.<\/p>\n

A recent survey<\/a> by the European Commission found that two-thirds of Europeans believe that technology has a positive impact on the quality of their lives. They felt the same about tech\u2019s role within the wider society, according to the region-wide poll.<\/p>\n

Those are significantly higher percentages than you might expect from a Continent that\u2019s positioning itself<\/a> as the world\u2019s digital policeman. And it\u2019s a reminder that while European policymakers might see the latest digital gadget or service as a potential privacy infringement or competition issue, most consumers view it as something else: a shiny piece of new technology that makes their lives easier or more fun.<\/p>\n

<\/p>\n

Companies like Google and Facebook have built up their dominant positions through an uncanny ability to get consumers to trust them | Stephen Lam\/Getty Images<\/p>\n

The inability of regulators to curb either the economic or social clout of these digital companies doesn\u2019t mean that Big Tech got its way all year. Nor does it suggest that politicians have been off the mark when pursuing cases against companies whose practices sailed too close to the wind.<\/p>\n

But as policymakers look to 2018 \u2014 and a number of potential regulatory fights await, including antitrust, privacy and tax cases \u2014 it\u2019s worth asking if they have the right tools to address inappropriate behavior on the part of Big Tech.<\/p>\n

Facebook, for instance, was fined three times this year in Europe (\u20ac110 million<\/a> by the European Commission, \u20ac1.2 million<\/a> by Spain\u2019s privacy watchdog and \u20ac150,000<\/a> by the French data protection authority) for different regulatory missteps; the social network is appealing the Spanish and French decisions.<\/p>\n

But for a tech company that pocketed<\/a> $4.7 billion in quarterly profit in just the three months ending September 30, these fines are a mere rounding error to the company\u2019s accounts, not a serious financial threat to make executives and engineers think twice before acting.<\/p>\n

This lopsided situation, at least when it comes to privacy concerns, will be addressed next year through a revamp of Europe\u2019s data protection rules that take effect in May. The changes \u2014 known collectively as the General Data Protection Regulation<\/a>, or GDPR \u2014 will allow European authorities to fine companies that flout national privacy laws \u20ac20 million or up to 4 percent of global revenue, whichever is higher.<\/p>\n

It\u2019s a testament to the potential power of these beefed-up penalties that companies like Google and Facebook are rushing to comply with the region\u2019s data protection standards, arguably some of the toughest rules anywhere in the world.<\/p>\n

Tech firms (and non-tech companies, too) have hired, collectively, thousands of new lawyers and coders to revamp how they handle people\u2019s personal data, fearful that one misstep could lead to hefty fines that would force even the most laid-back investor to do a double take.<\/p>\n

And yet, it\u2019ll take more than fines to change the public\u2019s perception of these digital giants, especially as people still view them mostly as a benign, if not beneficial, presence in their daily lives.<\/p>\n

\n

So far, fears about Big Tech\u2019s role in society have failed to break through in a meaningful way to most of the billions of people who use these digital services.<\/p>\n<\/blockquote>\n

Companies like Google and Facebook have built up their dominant positions not just through world-leading coding and (sometimes) cut-throat business practices. They\u2019ve also done it through an uncanny ability to get consumers to trust them \u2014 often with the most personal data about themselves.<\/p>\n

But as the recent fake news and election interfering scandals<\/a> on both sides of the Atlantic have shown, that trust can be quickly lost.<\/p>\n

More than half of Americans, for example, now don\u2019t trust social networking companies or the government to prevent foreign entities from manipulating elections, according to a poll by Axios<\/a>, a news organization. Just over 50 percent of respondents also felt that social media does more to harm than help democracy.<\/p>\n

That\u2019s the major risk confronting Big Tech as 2017 comes to a close.<\/p>\n

So far, fears about Big Tech\u2019s role in society have failed to break through in a meaningful way to most of the billions of people who use these digital services around the globe.<\/p>\n

But if the digital giants\u2019 growing number of missteps continue to erode consumer trust, the slow drip of anger and frustration aimed at Big Tech by the few could easily (and quickly) turn into a tidal wave of accusations by the many.<\/p>\n

Mark Scott is chief technology correspondent at <\/em>POLITICO.<\/p>\n

Original Article<\/a><\/p>\n

[contf] [contfnew] <\/p>\n

Politico<\/h5>\n

[contfnewc] [contfnewc] <\/p>\n

The post Tough times for Big Tech \u2014 except where it counts<\/a> appeared first on News Wire Now<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

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