Resolution: Regulation
Google and Facebook have expanded into virtually every corner of our lives with little or no oversight. 2020 may be the year of regulatory reckoning.
By Xische Editorial, January 10, 2020
If you have been reading anything about technology recently, you might expect 2020 to be the year of regulation. For the past several years, scrutiny of major technology companies has intensified as technology has become deeply ingrained in our lives. Silicon Valley giants like Google and Facebook have expanded into virtually every corner of our lives with little or no oversight. With data scandals and serious questions about how these companies handle our data, calls for regulation are unavoidable.
Analysts believe that 2020 will be a year of reckoning, especially in the West. One writer at Politico says that “officials across the EU and North America are finally realizing that just as tech companies are breaking down barriers between various industries, so too must policymakers stop living in silos if they really want to come to grips with how the digital economy works.”
Core to all the debates about technology regulation is the issue of data. How companies collect, store, analyse, and use data is one of the defining questions of our time and remains largely misunderstood. Even something as straightforward as how your Google search results are decided is a murky subject, as a recent Wall Street Journal podcast uncovered.
The Financial Times took the issue head-on with an editorial last December. Using the European Union’s data protection laws, the General Data Protection Regulation (GDPR), as a starting point, the editors made several important claims about the nature of data. They argue that “too much onus still rests on the individual user or the presumed owner of that data. Indeed, the very concept of data ownership may be unhelpful. An individual’s data is almost worthless in isolation and cannot be sold or traded in any serious way. Value is only derived when it is combined with others’ data. It has differential value to different data companies depending on the intended use.”
The editorial board goes on to describe how the GDPR needs to be updated to reflect fresh changes in how technology functions with regards to users. Strikingly, the editorial finishes by citing small examples in Europe that could be the springboard for bigger action.
“There have also been some intriguing developments in the data governance field,” the piece notes. “The EU-backed Decode project is a bold attempt to create an alternative, decentralised data ecosystem. The cities of Barcelona and Amsterdam regard their residents’ data as a public good that should benefit local communities. The Open Data Institute is also pioneering the use of data trusts, creating a legal structure to provide independent stewardship of data. Even the Big Tech companies appear to accept that the wild days of data land grabs may be ending.”
Smaller states lead the way
The idea that smaller countries or even cities can lead in data governance and regulation is one that we have been particularly focused on. We see the UAE as a leader in this field because of the talent in the country, local investments in technology, and the landscape of the UAE regulatory environment.
Consider the necessary ingredients needed to create sensible data regulations that protect the interests of users while ensuring that innovation can flourish. You need an educated public that is actively using the latest platforms and thus understands the challenges at play. You need lawmakers that are in touch with the rapid changes taking place in the sector. Finally, you need government institutions that are supportive of technology and are able to make regulatory decisions in a swift manner, so as to keep pace with the fast-moving sector.
All of these factors are present in the UAE. The government has invested ample capital and resources into the country’s knowledge economy. The country’s infrastructure is one of the best in the world for technology platforms. At the same time, the UAE is home to residents from over 200 nationalities that all use the latest technology from around the world to stay in touch and organise their lives. Finally, the regulatory environment is nimble and regulations can be passed with ease compared with deeper levels of bureaucracy in other parts of the world.
As the world is heading towards fresh data laws (or at least a debate about them), the UAE and other small countries like Estonia have the opportunity to put themselves ahead of the curve by passing their own laws quickly. Even the US state of California is taking steps to protect the data of its citizens. Under new laws that went into effect on the first of January, California will give users more control over their data. This is a blueprint to follow.
What should be done? Pass measures that designate data as a public good and give the government a greater role in demanding that private companies adhere to better standards of data protection. Facebook, as one example, needs to be held to a higher standard regarding bias. With the right regulations in place, local companies could help Facebook establish new bias protocols. Given the number of nationalities present in the UAE, the country is an obvious place to set up new operations to combat bias.
The technology industry has developed without much regulation and 2020 seems like the year that trajectory changes. As a part of building its own knowledge economy, the UAE can take the lead in crafting sensible regulations that will serve as a model for other places. The country has the talent and drive. Now it’s time to act.