Chief Executive of Cambridge Analytica (CA)Alexander Nix, leaves the offices in central London, as the data watchdog applies for a warrant to search computers and servers used by CA amid concerns at Westminster about the firm's activities. Dominic Lipinski/Press Association. All rights reserved.
On March 17, The Observer of London and The New York Times announced that Cambridge Analytica, the London-based political and corporate consulting group, had harvested private data from the Facebook profiles of more than 50 million users without their consent. The data was collected through a Facebook-based quiz app called thisisyourdigitallife, created by Aleksandr Kogan, a University of Cambridge psychologist who had requested and gained access to information from 270,000 Facebook members after they had agreed to use the app to undergo a personality test, for which they were paid through Kogan’s company, Global Science Research.
But as Christopher Wylie, a twenty-eight-year-old Canadian coder and data scientist and a former employee of Cambridge Analytica, stated in a video interview, the app could also collect all kinds of personal data from users, such as the content that they consulted, the information that they liked, and even the messages that they posted.
In addition, the app provided access to information on the profiles of the friends of each of those users who agreed to take the test, which enabled the collection of data from more than 50 million.
All this data was then shared by Kogan with Cambridge Analytica, which was working with Donald Trump’s election team and which allegedly used this data to target US voters with personalised political messages during the presidential campaign. As Wylie, told The Observer, “we built models to exploit what we knew about them and target their inner demons.”
Following these revelations the Internet has been engulfed in outrage and government officials have been quick to react. On March 19, President of the European Parliament Antonio Tajani, stated in a twitter message that misuse of Facebook user data “is an unacceptable violation of our citizens’ privacy rights” and promised an EU investigation. On March 22, Wylie communicated in a tweet that he accepted an invitation to testify before the US House Intelligence Committee, the US House Judiciary Committee and UK Parliament Digital Committee. On the same day Israel’s Justice Ministry informed Facebook that it was opening an investigation into possible violations of Israelis’ personal information by Facebook.
While such widespread condemnation of Facebook and Cambridge Analytica is totally justified, what remains largely absent from the discussion are broader questions about the role of data collection, processing and monetization that have become central in the current phase of capitalism, which may be described as ‘platform capitalism’, as suggested by the Canadian writer and academic Nick Srnicek in his recent book.
Over the last decade the growth of platforms has been spectacular: today, the top 4 enterprises in Forbes’s list of most valuable brands are platforms, as are eleven of the top twenty. Most recent IPOs and acquisitions have involved platforms, as have most of the major successful startups. The list includes Apple, Google, Microsoft, Facebook, Twitter, Amazon, eBay, Instagram, YouTube, Twitch, Snapchat, WhatsApp, Waze, Uber, Lyft, Handy, Airbnb, Pinterest, Square, Social Finance, Kickstarter, etc. Although most platforms are US-based, they are a really global phenomenon and in fact are now playing an even more important role in developing countries which did not have developed commercial infrastructures at the time of the rise of the Internet and seized the opportunity that it presented to structure their industries around it. Thus, in China, for example, many of the most valuable enterprises are platforms such as Tencent (owner of the WeChat and QQ messaging platforms) and Baidu (China’s search engine); Alibaba controls 80 percent of China’s e-commerce market through its Taobao and Tmall platforms, with its Alipay platform being the largest payments platform in China.
The importance of platforms is also attested by the range of sectors in which they are now dominant and the number of users (often numbered in millions and, in some cases, even billions) regularly connecting to their various cloud-based services. Thus, to name the key industries, platforms are now central in Internet search (Google, Yahoo, Bing); social networking (Facebook, LinkedIn, Instagram, Snapchat); Internet auctions and retail (eBay, Taobao, Amazon, Alibaba); on-line financial and human resource functions (Workday, Upwork, Elance, TaskRabbit), urban transportation (Uber, Lyft, Zipcar, BlaBlaCar), tourism (Kayak, Trivago, Airbnb), mobile payment (Square Order, PayPal, Apple Pay, Google Wallet); and software development (Apple’s App Store, Google Play Store, Windows App store). Platform-based solutions are also currently being adopted in more traditional sectors, such as industrial production (GE, Siemens), agriculture (John Deere, Monsanto) and even clean energy (Sungevity, SolarCity, EnerNOC).
User profiling – good-bye to privacy
These platforms differ significantly in terms of the services that they offer: some, like eBay or Taobao simply allow exchange of products between buyers and sellers; others, like Uber or TaskRabbit, allow independent service providers to find customers; yet others, like Apple or Google allow developers to create and market apps.
However, what is common to all these platforms is the central role played by data, and not just continuous data collection, but its ever more refined analysis in order to create detailed user profiles and rankings in order to better match customers and suppliers or increase efficiency.
All this is done in order to use data to create value in some way another (to monetize it by selling to advertisers or other firms, to increase sales, or to increase productivity). Data has become ‘the new oil’ of global economy, a new commodity to be bought and sold at a massive scale, and with this development, as a former Harvard Business School professor Shoshana Zuboff has argued, global capitalism has become ‘surveillance capitalism’.
What this means is that platform economy is a model of value creation which is completely dependant on continuous privacy invasions and, what is alarming is that we are gradually becoming used to this.
Most of the time platform providers keep track of our purchases, travels, interest, likes, etc. and use this data for targeted advertising to which we have become accustomed. We are equally not that surprised when we find out that, for example, robotic vacuum cleaners collect data about types of furniture that we have and share it with the likes of Amazon so that they can send us advertisements for pieces of furniture that we do not yet possess.
There is little public outcry when we discover that Google’s ads are racially biased as, for instance, a Harvard professor Latanya Sweeney found by accident performing a search. We are equally hardly astonished that companies such as Lenddo buy access to people’s social media and browsing history in exchange for a credit score. And, at least in the US, people are becoming accustomed to the use of algorithms, developed by private contractors, by the justice system to take decisions on sentencing, which often result in equally unfair and racially biased decisions.
The outrage provoked by the Cambridge Analytica is targeting only the tip of the iceberg. The problem is infinitely larger as there are countless equally significant instances of privacy invasions and data collection performed by corporations, but they have become normalized and do not lead to much public outcry.
Today surveillance is the DNA of the platform economy; its model is simply based on the possibility of continuous privacy invasions using whatever means possible. In most cases users agree, by signing the terms and conditions of service providers, so that their data may be collected, analyzed and even shared with third parties (although it is hardly possible to see this as express consent given the size and complexity of these agreements - for instance, it took 8 hours and 59 minutes for an actor hired by the consumer group Choice to read Amazon Kindle’s terms and conditions). In other instances, as in the case of Kogan’s app, the extent of the data collected exceeds what was stated in the agreement.
But what is important is to understand that to prevent such scandals in the future it is not enough to force Facebook to better monitor the use of users’ data in order to prevent such leaks as in the case of Cambridge Analytica. The current social mobilization against Facebook resembles the actions of activists who, in opposition to neoliberal globalization, smash a McDonald’s window during a demonstration.
What we need is a total redefinition of the right to privacy (which was codified as a universal human right in 1948, long before the Internet), to guarantee its respect, both offline and online.
What we need is a body of international law that will provide regulations and oversight for the collection and use of data.
What is required is an explicit and concise formulation of terms and conditions which, in a few sentences, will specify how users’ data will be used.
It is important to seize the opportunity presented by the Cambridge Analytica scandal to push for these more fundamental changes.
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