Annual Data Summit “Harnessing the Power of the Digital Revolution”
On the 13th of October, Politico Europe, in partnership with Telefonica, organized the second Annual Data Summit, under the heading “Harnessing the Power of the Digital Revolution”. The focus was on the opportunities that processing data could bring, as opposed to underlining the risks which get too much of the spotlight, according to Telefonica’s representative. Keeping in mind the importance of privacy, he went on to stress the benefits that Big Data could bring such more efficient and smart transportation/logistics, healthcare, education, access to financial services, all of which will contribute to creating economic growth.
COFACE-Families Europe has been very skeptical about the so called “benefits” of Big Data. In an article entitled “Fintechs: Milking the Poor”, Families Europe denounces the illusions of improving access to financial services via Big Data driven innovations, especially in Europe.
Commission Vice-President Andrus Ansip stressed in his keynote the importance to enable free data flows across borders, especially within the EU, and therefore in opposition to the “data localization” trend where in the name of privacy, data about users would have to be hosted at their national level. In the European Union, there are already 50 laws in 21 Member States about data localization and this could greatly increase the costs of hosting/processing data as setting up data centers in each Member State is inefficient as some countries’ climate and environment is better suited for optimizing data centers’ energy use. EU startups would be most penalized by data localization as the “big” players such as Amazon, Google, Facebook have the means to comply with data localization measures.
While data localization laws aim at addressing national security concerns as well as privacy concerns, Andrus Ansip stressed that free data flows and privacy are not incompatible. He went on to underline the necessity for guaranteeing data portability as another precondition for enabling free data flows.
While COFACE-Families Europe does not deny that public data which can be used to serve the common good: healthcare data or transportation data could help prevent or fight more effectively a number of health risks/diseases or prevent road accidents and enable smoother and smarter traffic management. As always, the devil is in the details. The same data sets can also be used to carry out individual risk assessments and price certain citizens out of the insurance market. And this is but one of the most evident dangers. In some countries like China, data has also been used to identify “good” and “bad” citizens. Therefore, a number of conditions need to be fulfilled to ensure that data serves the common good, including the possibility for independent bodies to audit algorithms working with data to check whether they contain any form of human bias or have harmful consequences (social exclusion, discrimination…) on a part of society.
In the debate around the benefits/risks of big data, COFACE Families Europe insists on one key aspect: there is, as of yet, no objective measurement for deciding whether benefits outweigh risks/harm. How many consumers need to suffer detriment before there is a need to become concerned and intervene? 10? 100? 1000? And unfortunately, if we are to look at certain recent cases, it seems as if (macro)-economic considerations trump consumer protection.cFor instance, in the Volkswagen Dieselgate scandal, it seems as if the German authorities will not penalize or fine Volkswagen, and Volkswagen doesn’t plan on compensating consumers, at least in Europe. In essence, it is more important to defend a National “champion” than protect consumers from fraud, which, of course, directly fuels moral hazard, encouraging companies to reach systemic importance to be relatively immune from consequences in case of fraud. Thus it is important to strongly regulate big data or what can be done with consumer data rather than wait for market players to reach systemic importance, at which point it will be too late.
With regards to data localization, COFACE-Families Europe agrees that such policies carry many risks among which limiting freedom of expression, the possibility for governments to target dissidents more easily or forced jurisdiction (by localizing your data in one country, you are forcibly subjected to the laws of that country which may not be to your advantage). At the same time, the risks of data concentration in select countries also has some disadvantages such as creation of monopolies, an unequal share of the economic benefits of data, and the same threats for spying and targeting dissidents, simply concentrated in a few countries instead of being spread across the Internet.
COFACE-Families Europe advocates for a balanced approach where users should have the right to choose whether they want their data to be hosted inside their country or not. While it is true that setting up data centers in certain countries is less economically efficient than in others (linked to energy efficiency concerns mostly), concentrating data centers in a select few countries is simply an extension of the “comparative advantage” economic theory, which has led to massive trade imbalances between highly industrialized/developed nations and under-developed nations solely reliant on raw resource extraction. Data hosting and data centers should be part of the public infrastructure and public services, much like telephone lines, electricity, water supply or roads. In each country, there should be a minimum public service for data hosting, in addition to private data hosting solutions and users could choose, inside the services they use, if they wish their data to be hosted in their country or not. Such debates, however, might become obsolete anyways, since decentralized data hosting solutions are currently being tested and would enable users to host their data directly on their devices, bypassing the need for centralized data centers altogether.
Justin Atonipillai from the US department of Commerce followed Andrus Ansip and stressed, in his speech, the support for the open source movement, which has created many different ways to share and analyze data in an ethical way, respectful of privacy. Families Europe fully agrees with this approach.
The first panel of the conference touched upon key topics such as consumer choice, interoperability, openness and data portability. MEP Julia Reda underlined several important points which Families Europe fully supports:
- Consumers must have the possibility to access their Internet of Things devices. For instance, the owner of a pace-maker could not access his own device to diagnose it for bugs even though he felt something was wrong.
- Users should have the right to move their data, but at the same time, the right to data portability shouldn’t be mistaken or mixed up with the concept of “data ownership” and especially, the danger of transforming data into a commodity or a property that can be “transferred” or “sold” like any other good. This goes directly contrary to data protection rights as some types of data, such as highly sensitive data like health related data, should never be “sold” or treated like a commodity.
COFACE-Families Europe addressed the panel during Q&A to insist on including mesh networking capabilities for IoT. Mesh networking would allow users of IoT devices to connect directly to those devices without going through the Internet and the servers of the companies selling these IoT devices. Mesh networking also allows IoT devices to talk directly to each other and enable interoperability. At the moment, the technologies which enable mesh networking include WiFi and Bluetooth, but the upcoming 5G standards, which will equip most IoT devices, also need to allow mesh networking.
For more information about the event, please visit the Politico website here.
The digital age as an opportunity to improve youth mental health
On the 10th of October, celebrating the World Mental Health Day, Mental Health Europe held a conference on the issue of mental health in the digital age. Experts from the industry and representatives from civil society including Youth Mental Health Ambassador Nikki Mattocks, gathered to share expertise and experience on how to prevent, protect and improve youth mental health online.
COFACE-Families Europe was represented on the panel by Martin Schmalzried, who presented the #DeleteCyberbullying project and lessons learned.
The #DeleteCyberbullying project ended in 2014 with key deliverables such as an Android app, an awareness-raising video, an online virtual march and the outcomes of a global European conference on the topic of cyberbullying. Besides the expertise gathered on how to best tackle cyberbullying, one very interesting lesson learned was the comments left by users on its awareness raising video, which reflected the many “myths” surrounding cyberbullying in the minds of regular users/individuals, showing that we are still a long way from ensuring that end users understand the phenomenon and are equipped to adequately respond.
Some of the most important “myths” surrounding cyberbullying include:
- The belief that you can simply turn off the technology on which you experience cyberbullying or disconnect/close your online accounts. In that event, not only does the cyberbullying continue, but it is even worse as you have no idea how many hateful messages or humiliating pictures about you are being circulated behind your back. Even a child who is not using technology at all can be a victim of cyberbullying, for example if a bully decides to open a “fake” account using some humiliating photos of that child.
- Over-simplifying the solution to an action like blocking the bully. While blocking is indeed part of the response to cyberbullying, it is by no means an all-encompassing solution. As explained above, cyberbullying can also happen behind a person’s back.
- “Everyone gets cyberbullied, don’t be such a pussy and toughen up”. The idea that cyberbullying or bullying for that matter are simply part of “life” and one has to toughen up. While it is true that the line between “teasing” and “cyberbullying” are subjective, this belief virtually legitimizes any forms of bullying/cyberbullying, especially the most serious, even criminal forms (like sharing sexual material of underage children to humiliate them). A healthy society shouldn’t be built on the predicament that everyone will get bullied, but rather to strengthen social skills, including social and emotional learning, developing empathy, to prevent such actions in the first place. Finally, it is always easy and convenient for the wolf to recommend sheep to “grow some teeth”.
- “Asking the bully to stop will only make things worse”. This may very well be the case, unfortunately, if the bullying/cyberbullying is unbearable and the victim seeks external help/assistance from a higher authority like a teacher or the police, the very first thing they will be asked is whether they “have told the perpetrators that their actions are hurtful and that they should stop”. This step is therefore a precondition for seeking further help rather than an end in itself.
Finally, Martin Schmalzried underlined that as cyberbullying is getting worse, looking at the statistics from the latest LSE study, policy makers need to envisage broader measures than education. The online environment also plays a role in the uptake of cyberbullying. Online service providers treat their users like subjects rather than citizens with no right to agency over the services they are using. Moderation is taken out of users’ hands and managed by an obscure cloud of professional moderators which cannot possibly respond to every cyberbullying situation in a timely fashion, busy as they are taking down the content which might get them in legal trouble (copyrighted material, child abuse/exploitation/pornography…).
COFACE-Families Europe has been calling for community based moderation, where users themselves have a right to act and shape the services they are using. And this might not only help curb cyberbullying, or hate speech, but is a fundamental necessity for cultivating values of democracy, deliberation, participation and compromise as it requires a community to debate and agree on the rules by which they are governed. Successful examples of community based moderation include Wikipedia, which has been built and populated by users themselves. As a final point, it is to be stressed that community based moderation cannot, by any means, equate to counter speech, which is simply “support” messages to a victim without any right to agency/participation in governing their online services.
More information about the event here.
Digital Festival 2016 – an event promoting disruptive thinking in the digital world
On the 21st of June, Forum Europe organized a Digital Festival, which consisted in a savant mix of high level panel discussions on the opportunities and threats of digitalization, a variety of live demonstrations of nascent or future technologies, and parallel workshop sessions covering many key issues such as Data Protection and Privacy, Connected Cars, Internet of Things, Blockchain technology and the emergence of Fintechs.
Data Protection and Privacy
With the enforcement of the GDPR, there will be an opportunity to strengthen data protection and privacy. Although there were data protection laws in place before the GDPR, companies had little incentive to enforce them. The penalties for breaching data protection and privacy laws were so low that some companies simply violated the law with the intention of paying any penalty if necessary.
With the GDPR, the penalty can now amount up to 4% of a company’s worldwide turnover, which should be a strong deterrent for breaching data protection and privacy laws.
Each company should now set up a data ethics department, which constantly reflects on how their use of data affects users and whether data analytics are compatible with key principles and values such as human rights, inclusion, anti-discrimination and so forth.
Finally, while there are new “tech driven” solutions to problems with the existing World Wide Web such as the Decentralized Web, speakers at the workshop agreed that we should focus on “fixing” the existing Web which was intended to be open and decentralized.
The workshop on connected cars consisted in the presentation from a company, Intelsat, pitching the advantage of using direct satellite connectivity for connected cars. While it was clear that satellite connection has many advantages including a much higher coverage and reliability as opposed to mobile networks, there are several issues which need to be addressed.
Firstly, since putting satellites into orbit is highly costly, satellite service is a near monopoly which could cause many problems such as abuse of dominant position, price setting, “lock in” effect, even net neutrality issues all over again.
Secondly, assuming that connected cars will always require an Internet connection is linked to business strategies than fact. Mesh networking (via a mesh enabled 5G standard for instance) could enable connected cars to communicate directly between each other and inform cars in a certain area of accidents or road conditions without the need to go through the Internet (which of course goes against the interests of mobile network operators or satellite service providers).
More fundamentally, there are a myriad of other topics related to connected cars which deserve attention:
– How such data will be used and for which purposes? For instance, if we see insurance premiums based on data generated from connected cars, should we allow the “richest” drivers from paying for the right to drive like maniacs?
– How will connected cars affect the current business models of car manufacturers? There are already examples of GM which locks consumers into using “GM approved” repair shops whenever they need to fix their vehicles.
– How “safe” are connected cars in terms of hacking (there have been examples of connected cars being hacked from a distance) or even spying from governmental agencies?
Several recent developments at EU level will affect the development of Fintechs. First, the passporting of financial services will allow financial service providers to operate across all EU Member States. Second, the enforcement of the PSD2 Directive will enable greater competition in the field of payment services via the use of an API. Third, it is not yet clear whether Fintech providers will fall under the scope of the EU Commission consultation and future policy on platforms which may affect issues such as how they treat consumer data and their business models.
There are many potential benefits from the emergence of Fintechs but also many risks to consumers and to that end, all speakers agreed that we need to closely monitor the market in order to decide whether regulation is necessary or other forms of policy tools should be used in case there is a clear risk of consumer detriment.
For more information about the Digital Festival, see the event’s website