Privacy is sooo… yesterday: Google’s Chief Economist

“One easy way to forecast the future is to predict that what rich people have now, middle class people will have in five years, and poor people will have in ten years. It worked for radio, TV, dishwashers, mobile phones, flat screen TV, and many other pieces of technology.

What do rich people have now? Chauffeurs? In a few more years, we’ll all have access to
driverless cars. Maids? We will soon be able to get housecleaning robots. Personal assistants? That’s Google Now. This area will be an intensely competitive environment: Apple already has Siri and Microsoft is hard at work at developing their own digital assistant. And don’t forget IBM’s Watson.

Of course there will be challenges. But these digital assistants will be so useful that everyone will want one, and the scare stories you read today about privacy concerns will just seem quaint and old­fashioned.”

Hal Varian, “Beyond Big Data”, NABE Annual Meeting, September 10, 2013, San Francisco.

Facebook can’t be just a ‘platform’ if it’s distributing news

This morning’s Observer column:

Many years ago, the political theorist Steven Lukes published a seminal book – Power: A Radical View. In it, he argued that power essentially comes in three varieties: the ability to compel people to do what they don’t want to do; the capability to stop them doing what they want to do; and the power to shape the way they think. This last is the kind of power exercised by our mass media. They can shape the public (and therefore the political) agenda by choosing the news that people read, hear or watch; and they can shape the ways in which that news is presented. Lukes’s “third dimension” of power is what’s wielded in this country by outlets like Radio 4’s Today programme, the Sun and the Daily Mail. And this power is real: it’s why all British governments in recent years have been so frightened of the Mail.

But as our media ecosystem has changed under the impact of the internet, new power brokers have appeared….

Read on

Big data: the new gasoline

This morning’s Observer column:

“Data is the new oil,” declared Clive Humby, a mathematician who was the genius behind the Tesco Clubcard. This insight was later elaborated by Michael Palmer of the Association of National Advertisers. “Data is just like crude [oil],” said Palmer. “It’s valuable, but if unrefined it cannot really be used. It has to be changed into gas, plastic, chemicals, etc to create a valuable entity that drives profitable activity; so must data be broken down, analysed for it to have value.”

There was just one thing wrong with the metaphor. Oil is a natural resource; it has to be found, drilled for and pumped from the bowels of the Earth. Data, in contrast, is a highly unnatural resource. It has to be created before it can be extracted and refined. Which raises the question of who, exactly, creates this magical resource? Answer: you and me…

Read on

If the EU doesn’t take on Google, who will?

Last Sunday’s Observer column:

Last week, the European commission, that bete noire of Messrs Gove, Johnson & co, resumed its attack on Google. On Wednesday, Eurocrats filed formal charges against the company, accusing it of abusing its dominance of the Android operating system, which is currently the world’s most-used mobile operating system software. This new charge comes on top of an earlier case in which the commission accused Google of abusing its overwhelming dominance of the web-search market in Europe in order to favour its own enterprises over those of competitors.

This could be a big deal. If the commission decides that Google has indeed broken European competition law, then it can levy fines of up to 10% of the company’s annual global revenue for each of the charges. Given that Google’s global sales last year came to nearly $75bn, we’re talking about a possible fine of $15bn (£10.5bn). Even by Google standards, that’s serious money. And it’s not exactly an idle threat: in the past, the Eurocrats have taken more than a billion dollars off both Microsoft and Intel for such violations.

To those of us who follow these things, there’s a whiff of Back to the Future here.

Read on

The Wille E Coyote effect

Benedict Evans is at the huge annual mobile phone gabfest in Barcelona. On his way he wrote a very thoughtful blog post about the world before smartphones, and why Nokia and Blackberry didn’t see their demises coming.

Michael Mace wrote a great piece just at the point of collapse for Blackberry, looking into the problem of lagging indicators. The headline metrics tend to be the last ones to start slowing down, and that tends to happen only when it’s too late. So it can look as though you’re doing fine and that the people who said three years ago that there was a major strategic problem were wrong. You might call this the ‘Wille E Coyote effect’ – you’ve run off the cliff, but you’re not falling, and everything seems fine. But by the time you start falling, it’s too late.

That is, using metrics that point up and to the right to refute a suggestion there is a major strategic problem can be very satisfying, but unless you’re very careful, you could be winning the wrong argument. Switching metaphors, Nokia and Blackberry were skating to where the puck was going to be, and felt nice and fast and in control, while Apple and Google were melting the ice rink and switching the game to water-skiing.

I love that last metaphor.

In a way, it was another example of Clayton Christensen’s ‘innovator’s dilemma’. It’s the companies that are doing just fine that may be most endangered.

It’s a great blog post, worth reading in full. Also reminds us that mobile telephony was much more primitive in the US than it was in Europe (because of the GSM standard over here), and that Steve Jobs and co really hated their ‘feature’ phones as primitive devices. Evans sees something similar happening now with cars. It’s no accident, he thinks, that tech companies (Apple, Google) are working on cars. Techies hate cars in their current crude manifestations, whereas the folks who work in the automobile industry love them. Just as Nokia engineers once loved their hardware.

The Viking who is taking on Silicon Valley

FT_Vestager

Terrific Financial Times profile of Margrethe Vestager, the EU’s Competition Commissioner, who is really getting up the noses of Silicon Valley’s overlords. Because of public hostility to the craven deal that HMRC negotiated with Google over back-taxes, many people here will be rooting for her. (She’s said that she is prepared to examine the deal.) But if her probe into Apple’s weird tax arrangements with the Irish government results in a colossal back-tax bill for the company, then we will really have moved into new territory.

For one thing, it’ll unravel a crazy system of international tax laws that dates back to 1928. And it’ll open all kinds of worm-cans — Amazon pretending that it’s based in Luxembourg; Facebook, Apple, Microsoft and Google pretending they’re based in Dublin; and so on. And of course the US will be mightily pissed off. Not bad for the daughter of two Lutheran pastors. Just as well that she’s a tough cookie. The FT profile has a nice story about her time as Deputy Prime Minister of Denmark. An opposition spokesman complained in Parliament that her proposed spending plans were “small”.

“Some think it is a rather small plan,” she retorted, with a mischievous grin. “But I am a bit cautious about trusting any judgments on size from men, and perhaps — but this might be a woman’s perspective — I am more interested in the effect.”

The new sun in the tech universe

This morning’s Observer column:

The Christmas holidays are the time of year when different generations of the family gather around the dinner table. So it’s a perfect opportunity for a spot of tech anthropology. Here’s how to do it.

At some point, insert into the conversation a contemporary topic about which most people have strong opinions but know relatively little. Jeremy Clarkson, say. There will come a moment when someone decides that the only thing to be done to resolve the ensuing factual disputes is to “Google it”. Watch what happens next…

Read on

The European Court of Justice’s bombshell

This morning’s Observer column:

On Tuesday, the European court of justice, Europe’s supreme court, lobbed a grenade into the cosy, quasi-monopolistic world of the giant American internet companies.

It did so by declaring invalid a decision made by the European commission in 2000 that US companies complying with its “safe harbour privacy principles” would be allowed to transfer personal data from the EU to the US.

This judgment may not strike you as a big deal. You may also think that it has nothing to do with you.

Wrong on both counts, but to see why, some background might be useful….

Read on

LATER This is a truly extraordinary moment. Lots of interesting and informative stuff about it on the Web, including this piece by Julia Powles and this NYT piece by Robert Levine.

And this from Edward Snowden:

Snowden_tweet

So what happens next? My colleague Nóra ní Loideain has passed me this reassuring note:

Christopher Graham, UK Information Commissioner, said on 8 October at a meeting at Dentons [a law firm]: “Don’t panic. Safe Harbor is not the only route for international transfers. We are coordinating our thinking with other DPAs across the European Union.” The 28 DPAs which form the EU Art. 29 Data Protection Working Party met in their International Transfers sub-group on 8 October, and this group’s plenary will discuss the issue on Thursday this week, on 15 October.

Which means … what, exactly??