How the personal data extraction industry ends

Who Owns the Internet? — What Big Tech’s Monopoly Powers Mean for our Culture is Elizabeth Kolbert‘s review in The New Yorker of several books, one of which I’ve read: Jonathan Taplin’s Move Fast and Break Things—How Facebook, Google, and Amazon Cornered Culture and Undermined Democracy.

The main takeaway for me, to both Elizabeth’s piece and Jon’s book, is making clear that Google and Facebook are at the heart of today’s personal data extraction industry, and that this industry defines (as well as supports) much of our lives online.

Our data, and data about us, is the crude that Facebook and Google extract, refine and sell to advertisers. This by itself would not be a Bad Thing if it were done with our clearly expressed (rather than merely implied) permission, and if we had our own valves to control personal data flows with scale across all the companies we deal with, rather than countless different valves, many worthless, buried in the settings pages of the Web’s personal data extraction systems, as well as in all the extractive mobile apps of the world.

It’s natural to look for policy solutions to the problems Jon and others visit in the books Elizabeth reviews. And there are some good regulations around already. Most notably, the GDPR in Europe has energized countless developers (some listed here) to start providing tools individuals (no longer just “consumers” or “users”) can employ to control personal data flows into the world, and how that data might be used. Even if surveillance marketers find ways around the GDPR (which some will), advertisers themselves are starting to realize that tracking people like animals only fails outright, but that the human beings who constitute the actual marketplace have mounted the biggest boycott in world history against it.

But I also worry because I consider both Facebook and Google epiphenomenal. Large and all-powerful though they may be today, they are (like all tech companies, especially ones whose B2B customers and B2C consumers are different populations—commercial broadcasters, for example) shallow and temporary effects rather than deep and enduring causes.

I say this as an inveterate participant in Silicon Valley who can name many long-gone companies that once occupied Google’s and Facebook’s locations there—and I am sure many more will occupy the same spaces in a fullness of time that will surely include at least one Next Big Thing that obsolesces advertising as we know it today online. Such as, for example, discovering that we don’t need advertising at all.

Even the biggest personal data extraction companies are also not utilities on the scale or even the importance of power and water distribution (which we need to live), or the extraction industries behind either. Nor have these companies yet benefitted from the corrective influence of fully empowered individuals and societies: voices that can be heard directly, consciously and personally, rather than mere data flows observed by machines.

That direct influence will be far more helpful than anything they’re learning now just by following our shadows and sniffing our exhaust, mostly against our wishes. (To grok how little we like being spied on, read The Tradeoff Fallacy: How Marketers are Misrepresenting American Consumers and Opening Them Up to Exploiitation, a report by Joseph Turow, Michael Hennessy and Nora Draper of the Annenberg School for Communication at the University of Pennsylvania.)

Our influence will be most corrective when all personal data extraction companies become what lawyers call second parties. That’s when they agree to our terms as first partiesThese terms are in development today at Customer Commons, Kantara and elsewhere. They will prevail once they get deployed in our browsers and apps, and companies start agreeing (which they will in many cases because doing so gives them instant GDPR compliance, which is required by next May, with severe fines for noncompliance).

Meanwhile new government policies that see us only as passive victims will risk protecting yesterday from last Thursday with regulations that last decades or longer. So let’s hold off on that until we have terms of our own, start performing as first parties (on an Internet designed to support exactly that), and the GDPR takes full effect. (Not that more consumer-protecting federal regulation is going to happen in the U.S. anyway under the current administration: all the flow is in the other direction.)

By the way, I believe nobody “owns” the Internet, any more than anybody owns gravity or sunlight. For more on why, see Cluetrain’s New Clues, which David Weinberger and I put up 1.5 years ago.

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6 Responses to How the personal data extraction industry ends

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  2. Gerri says:

    Once again, great post, Doc.

    I just read New Clues and loved that as well. It’s definitely something I will share.

    My concern is that AI may become so clever that we, as consumers, will no longer realize that we are not interacting with other humans. In some cases, we could already be there.

    There’s also the theory that we are all AI beings in the matrix… I would like to remain human, if that’s even a thing anymore.

    • Doc Searls says:

      Thanks, Gerri.

      I’m not freaked by AI. Perhaps that’s because I’ve witnessed so many tech revolutions in my time that I’m a bit preëmptively jaded about the next one. But I think it’s mostly because we’ve always been more than our physical selves. All our tools enlarge us. The driver thinks in the first person about my engine and my wheels, the pilot about my rudder and my wings. As Polanyi put it, we indwell in our tools, and in all technologies that enlarge us in ways we can also operate expertly.

      But, as McLuhan taught, we shape our tools and after that they shape us. We are changed by them.

      The AI tools we have today are like the mainframe computers we had until the 80s: they belong to giant machines in giant companies. They are not extensions of our human selves. When we get AI that extends us as individuals, as a car extends a driver or a plane extends a pilot, that will be the true revolution. I am also sure that each of us will do more with that AI than any of the giants or their AIs imagine they can.

  3. Hersh says:

    A fantastic write-up and one I completely agree with. I feel currently a lot of the corporations you mention are surreptitious about their use of your data due to the insane amount of value it adds to their ecosystem – individuals would and are starting to ask these questions now and put the pieces together.

    On that note – I totally agree that is the future, and I feel my company PI.EXCHANGE was worth sharing with you, we are launching the world’s first personal data bank. It’s free to use and we are totally transparent about what we do with your data. We see the future as one where companies like us can work with individuals to help augment their data’s value by making it accessible to small business via automating the insights production process.

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