OX Blog

Disrupting the Data Economy: Innovation and technology-led bravery

Written by Rafael Laguna | Jan 25, 2016

From both a political and a technological perspective, the landscape of Internet services in 2016 is one under massive strain and transformation. There is enormous pressure on companies to innovate and compete, whilst simultaneously preserving their users’ rights to privacy. All the while, governments around the world are increasingly demanding that tech companies comply with their national security directives, handing over and collecting data when necessary. The value of the data economy is widely recognized, but the brave new world in which it operates is not without its complexities.

Often the disruptive forces that are driving technological innovation and change clash with our rights to freely connect, share and communicate with one another. VC’s expect a return on investment that fledging start-ups can often only guarantee by flogging their users’ data to the highest bidder. It takes real bravery to stand up for user privacy in this context. But this situation has accelerated how people create value on their own terms and conditions.Bateaux gonflables

Business models and mind-sets are emerging that give greater respect to users’ rights and privacy. Companies like Facebook and Google, as well as government agencies like GCHQ and the NSA have fostered a paternalistic view of data that runs counter to the democratic values of openness, transparency and freedom.

Especially with the strike down of the 15 year old `Safe Harbor´ framework for the EU-US data transfer, the European Court of Justice (ECJ) put a stake in the ground that consumers earn services that take their privacy rights seriously. As we are entering into the final week of negotiations on a key transatlantic data-transfer agreement, I am confident that European states will insist on a deal for their citizens that take people’s right to privacy rights seriously.

If 2015 was the year that data privacy took center stage, 2016 is set to be the year that privacy will disrupt the data economy. Successful businesses of the future will need to build their foundations on openness in order to thrive and become sustainable players.