{"id":62567,"date":"2018-02-07T13:40:40","date_gmt":"2018-02-07T13:40:40","guid":{"rendered":"http:\/\/www.bnreport.com\/to-protect-or-collect-germanys-big-data-divide-2\/"},"modified":"2018-02-07T13:40:40","modified_gmt":"2018-02-07T13:40:40","slug":"to-protect-or-collect-germanys-big-data-divide-2","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/to-protect-or-collect-germanys-big-data-divide-2\/","title":{"rendered":"To protect or collect? Germany\u2019s big data divide"},"content":{"rendered":"<p>BERLIN \u2014 Big data is Germany\u2019s future. Problem is, its leaders can\u2019t agree on how to use it.<\/p>\n<p>Amid talks on forming a government, Chancellor Angela Merkel\u2019s conservative bloc and the Social Democrats are hammering out the country\u2019s digital strategy for the next four years.<\/p>\n<p>Both sides agree that e-government, big data and expanded fast internet will be crucial for Germany\u2019s economic future. But they are miles apart on this central question: How should the millions of terabytes of data <a href=\"http:\/\/www.northeastern.edu\/levelblog\/2016\/05\/13\/how-much-data-produced-every-day\/\" rel=\"noreferrer\" target=\"_blank\">generated each day<\/a> in a digitized economy be regulated?<\/p>\n<p>The answer will shape how German industry approaches the next decades: by seeking to dominate the Internet of Things by hoovering up as much data as possible or using high privacy standards as an argument to Buy German.<\/p>\n<p>Merkel\u2019s center-right CDU party likes Option 1.<\/p>\n<blockquote>\n<p>Lawmakers on both sides of the digital divide know they need to reach some sort of consensus quickly.<\/p>\n<\/blockquote>\n<p>\u201cThere\u2019s no other country where it\u2019s more difficult [for companies] to work with data,\u201d said Thomas Jarzombek, digital affairs spokesman for the CDU in parliament. \u201cArtificial intelligence, for example, won\u2019t work without massively analyzing data. And at some point, we have to tell people this.\u201d<\/p>\n<p>If Germany industry is going to compete against foreign rivals in the coming decade, he argued, it cannot be hamstrung by rigid rules on data collection.<\/p>\n<p>But for the Social Democrats (SPD), it\u2019s the other way around.<\/p>\n<p>Privacy rules are a competitive advantage, they argue. Instead of deregulating, the government should press local manufacturers to promote German products as data-safe alternatives to those from the U.S., China and other trade rivals.<!--more--><\/p>\n<p>Ulrich Kelber, the deputy acting justice minister and SPD member, said privacy is a selling point, not a problem.<\/p>\n<p>\u201cThe question, really, is when will European companies decide to push forward with advertising that they can offer applications \u2014 messenger services, social networks, cloud services \u2014 whose customers don\u2019t get screened and ripped off?\u201d he told POLITICO.<\/p>\n<p>Kelber noted that some firms, like their American or Chinese counterparts, wanted a free hand to collect as much data as possible and then see how they could make money from derived applications.<\/p>\n<p>\u201cBut this is not the European approach,\u201d he said. \u201cThings will have to work differently here.\u201d<\/p>\n<h3>Fast internet for all<\/h3>\n<p>Lawmakers on both sides of the digital divide know they need to reach some sort of consensus quickly.<\/p>\n<p>After decades of thriving thanks to quality engineering and price competitiveness, German manufacturers now see their business models changing radically.<\/p>\n<p>One major shift is that their devices need to become interconnected.<\/p>\n<p>An elevator manufacturer may previously have been able to sell a product based on the promise that it would get people safely from one floor to another. In the near future, customers will expect elevators to alert them weeks in advance of an imminent breakdown.<\/p>\n<p> <img decoding=\"async\" src=\"https:\/\/www.politico.eu\/wp-content\/uploads\/2018\/02\/GettyImages-908709010-714x476.jpg\"\/><\/p>\n<p>Ulrich Kelber, deputy acting justice minister and SPD member, left, with Sigmar Gabriel at the Bundestag in Berlin | Odd Andersen\/AFP via Getty Images<\/p>\n<p>This means that all manufacturers, large and small, will require access to fast internet connections, even if the factory is located far from an urban center.<\/p>\n<p>Thankfully for them, there is hope that Germany will move fast to upgrade its grid.<\/p>\n<p>While bureaucratic battles between ministries controlled by different parties <a href=\"https:\/\/www.politico.eu\/article\/germany-digital-ministry-divide\/\" rel=\"noreferrer\" target=\"_blank\">stymied efforts to upgrade the grid under Merkel\u2019s last government,<\/a> all parties in the talks told POLITICO that they were determined to do things differently.<\/p>\n<p>Hurray for German internet.<\/p>\n<p>But then there is the issue of data.<\/p>\n<h3>Data protection thicket<\/h3>\n<p>Across Germany, a total of 16 separate entities are in charge of overseeing the data protection practices of private companies.<\/p>\n<p>That number alone \u2014 one for each German federal state \u2014 is enough to intimidate potential investors, argued the CDU\u2019s Jarzombek.<\/p>\n<p>\u201cWe have different data protection agencies in all 16 federal states, some of whom don\u2019t like each other and scare away their customers,\u201d he said.<\/p>\n<p>While advocates of the current system argue it guarantees firms access to advisers, opponents say it\u2019s led to a hodge-podge of different interpretations of privacy laws.<\/p>\n<blockquote>\n<p>The Social Democrats say Germany should remain known as a haven for privacy protection.<\/p>\n<\/blockquote>\n<p>The sheer variety of interpretations means that companies cannot grasp all the rules.<\/p>\n<p>And while European Union will soon roll out sweeping changes to privacy rules across the bloc as part of a reform known as the General Data Protection Regulation (GDPR), critics fear the GDPR will not fundamentally change the situation in Germany.<\/p>\n<p>Not so says the SPD\u2019s Kelber, who dismissed criticism of the 16 agencies.<\/p>\n<p>\u201cSome of those allegations, if you\u2019re honest, are actually a demand to scale down data protection in general,\u201d he said.<\/p>\n<h3>The <em>Gretchenfrage<\/em> of German politics<\/h3>\n<p>The question, therefore, is quasi-philosophical: How do Germans <em>really<\/em> feel about data protection?<\/p>\n<p>Some observers say that has become a <em>Gretchenfrage \u2014 <\/em>a question as momentous as the one Johann Wolfgang von Goethe had his protagonist Gretchen ask her lover in his tragedy \u201cFaust 1\u201d: \u201cWhat is your take on religion?\u201d<\/p>\n<p>The Christian Democrats\u2019 answer: Data should not be regulated too closely.<\/p>\n<p>Although U.S. giants have \u201ca great advantage\u201d on technological development because of the troves of data they collect via consumer applications, it is not late for Germany to enter the race as the \u201cinternet of machines\u201d is still in its infancy, said the CDU\u2019s Jarzombek.<\/p>\n<p> <img decoding=\"async\" src=\"https:\/\/www.politico.eu\/wp-content\/uploads\/2017\/12\/GettyImages-187265648-714x493.jpg\"\/><\/p>\n<p>A Facebook data center in Europe | Jonathan Nackstrand\/AFP via Getty Images<\/p>\n<p>\u201cIt will come down to the question of whether German manufacturers will just include the systems of U.S. giants like Google in their products to collect data \u2014 or will they develop the necessary sensors themselves?\u201d he said.<\/p>\n<p>The Social Democrats say Germany should remain known as a haven for privacy protection.<\/p>\n<p>\u201cThere are developments that have led to popular applications, programs or companies in the United States or China, which we don\u2019t want to have here in their form \u2014 since questions of data protection have not been answered to a sufficient degree,\u201d Kelber said.<\/p>\n<p>Instead, Germany and Europe should encourage firms to provide services that truly \u201cserves their benefit and not the benefit of a third party,\u201d he said.<\/p>\n<p><a href=\"https:\/\/www.politico.eu\/article\/to-protect-or-collect-germanys-big-data-divide\/?utm_source=RSS_Feed&amp;utm_medium=RSS&amp;utm_campaign=RSS_Syndication\" rel=\"noreferrer\" target=\"_blank\">Original Article<\/a><\/p>\n<p> [contf] [contfnew]         <img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcRMd3Tz2gX9xSa6CJyaOj2dokBVcrdaT4yY3R3RI7YmL18vCLZZ\"\/> <\/p>\n<h5><a href=\"http:\/\/www.politico.com\/&gt;Politico&lt;\/a&gt;&lt;\/h5&gt;_&lt;\/p&gt;[contfnewc]_[contfnewc]_&lt;\/body&gt;&lt;\/html&gt;\" rel=\"noreferrer\" target=\"_blank\"><\/a><\/h5>\n","protected":false},"excerpt":{"rendered":"<p>BERLIN \u2014 Big data is Germany\u2019s future. Problem is, its leade..<\/p>\n","protected":false},"author":1,"featured_media":62568,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[50],"tags":[],"class_list":["post-62567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>To protect or collect? Germany\u2019s big data divide - Business News Report<\/title>\n<meta name=\"description\" content=\"BERLIN \u2014 Big data is Germany\u2019s future. 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