Your privacy and data monetisation in new regime of GDPR

From 25th of May, 2018 — General Data Protection Regulation (GDPR) has been promulgated for European Union citizens to deal with privacy concerns in the era of aggressive data collection and data processing. Though, as if now, companies have to adjust with new reality only for European citizens but time is not too far when other countries also start taking the cue from this new regulation and pondering about implementing similar kind of regulation in their respective countries. 

What is GDPR?

1. GDPR is a new regulation applicable to any company serving European citizens — directly or indirectly — to strengthen data protection and deal with privacy concerns in wake of Cambridge Analytica.
2. In this new regime, every company has been forced to take consent from users for data processing in an affirmative action or statement including data processing by third parties.
3. It empowers a consumer to transfer and delete data whenever they want. This regime settles the question of who owns the data once for all. i.e. GDPR guaranteed Right to Be Forgotten by law.
4. The era of hiding in intricate terms and condition is gone. Now, companies cannot force users to agree without even reading the terms of service. (Interesting Fact — in the recent US Senate hearing of Facebook, one of the senator called the service terms of Facebook absurd, foolish and too complicated for its users. Precisely for this reason)
5. There is a provision of a hefty fine for not following this regulation in later and spirit which can be up to 4% of global revenue or 20 Million Euro whichever is higher.

The last point makes the bypassing or breaking the law an affordable act for companies. So, companies have only two choices — either abide by the new law or lose the European market. 

It is predicted that abiding by this regulation will cost more than 200 billions of dollars for European companies alone. You can imagine the gravity of the situation. Since last few months, many new companies have started breeding just by offering other companies to adjust to the new reality of GDPR.

What are implications for GDPR for companies?

1. This a groundbreaking regulation first of its kind, companies are struggling to adopt the changes. It is shaking the entire eco-system of privacy for users and data monetization for companies
2. We are still not sure how this regulation will pan out and how will it be enforced. There is still a lot of prevailing uncertainty that needs to be taken care of. A lot more clarity is required.
3. Many companies have to alter their business model to survive in new regime as some of earlier business model may not be sustainable anymore. We are already seeing the repercussions of GDPR in terms of retreat by many companies from the European market.
4. The small and mid-size companies will take the biggest hit. There is bound to have a drastic decline in advertisement revenue. Many have already announced retreating their business from European countries. Our revenue from European countries has declined by 10% in the last few days. Will small businesses able to absorb such level of shock still need to be answered. Only time can tell.

What are implications for GDPR for consumers?

1. This regulation is prepared, keeping the idea of the consumer first since inception. It empowers every user by giving more control over the use of personal data.
2. This regulation is applicable in retrospect and it requires companies to take consent from users for earlier data as well. So, initially, users will find it annoying to grant flooding number of permissions and go through a number of changes in privacy policies. We have already started getting emails from companies informing changes in their privacy policy.
3. A user will have all the information about who has his/her data including third parties and how will it be used. Companies cannot use any data beyond the predefined purpose after taking an affirmative consent from users. 
4. Everything has been simplified for users to understand the nitty-gritty about data processing. So, it will a wonderful opportunity for users to understand about complexities of data uses.
5. Eventually, after assimilating the changes — it will enhance the credibility of technology in eyes of those who are not so tech savvy and doubtful about the importance of technology in the modern world.
6. The responsibility of making the user understand about service terms has been shifted from users to companies.
7. Companies cannot pursue any hidden agenda or conduct experiments with user’s data without taking their prior consent

This regulation will arise various kinds of short-term pain for companies but it offers many long-term benefits to enhance the overall credibility of data eco-system. After all, privacy is a fundamental human right recognized universally and any investment to protect it cannot be termed as economically expensive.

Initially, the companies have to bite the bullet but it also provides a great opportunity to build trustworthy products which have taken hit in recent time. Just like people must know the ingredients of any food products, people must know the purpose behind the user's data uses.