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Short-Run Effects of GDPR on Technology Venture Investment

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Re: Short-Run Effects of GDPR on Technology Venture Investment

#51

Post by AnthonyMouse »

StavrosK wrote: post #41

Otherwise read as "turns out that you make less money if you aren't allowed to sell people's private data off". What else is new?

There are two effects here. One is you don't make as much money from advertising, true. Though even that is still a cost -- that money had been funding R&D and subsidizing access to services for low income people.

But in addition to that, there is the deadweight economic loss from the compliance cost destroying low margin operations with positive externalities, and reducing competition which allows incumbents to become more abusive.

Re: Short-Run Effects of GDPR on Technology Venture Investment

#52

Post by StavrosK »

AnthonyMouse wrote: post #51
StavrosK wrote: post #41

Otherwise read as "turns out that you make less money if you aren't allowed to sell people's private data off". What else is new?

There are two effects here. One is you don't make as much money from advertising, true. Though even that is still a cost -- that money had been funding R&D and subsidizing access to services for low income people. But in addition to that, there is the deadweight economic loss from the compliance cost destroying low margin operations with positive externalities, and reducing competition which allows incumbents to beco…

I expect the latter to be reduced as the kinks get ironed out and knowledge of compliance becomes more widespread, kind of like the economic loss from the compliance cost of not cheating on your taxes is pretty low by now.

Re: Short-Run Effects of GDPR on Technology Venture Investment

#53

Post by AnthonyMouse »

StavrosK wrote: post #52
AnthonyMouse wrote: post #51

Earlier quoted context omitted.

There are two effects here. One is you don't make as much money from advertising, true. Though even that is still a cost -- that money had been funding R&D and subsidizing access to services for low income people. But in addition to that, there is the deadweight economic loss from the compliance cost destroying low margin operations with positive externalities, and reducing competition which allows incumbents to beco…

I expect the latter to be reduced as the kinks get ironed out and knowledge of compliance becomes more widespread, kind of like the economic loss from the compliance cost of not cheating on your taxes is pretty low by now.

That is completely the opposite of what happened with taxes. The complexity was such a problem that the law was changed so that as many people as possible would take the standard deduction, i.e. the tax law basically exempted small players from the complex rules.

And even then the tax complexity still disadvantages small players because their larger competitors have the resources to use the complexity to their advantage and end up paying less tax.

Re: Short-Run Effects of GDPR on Technology Venture Investment

#54

Post by [deleted] »

virmundi wrote: post #50
upofadown wrote: post #32

Earlier quoted context omitted.

... and persistent 1st party cookies which are then allowed to stick around for up to a year.

That’s my issue. If I have a cookie for a refresh token, I have to now have a banner saying the site uses a cookie. I have to have a page that explains why. All the while I have the site now looking shady because the banner is synonymous with stealing your data and selling it to ISIS.

[deleted]

Re: Short-Run Effects of GDPR on Technology Venture Investment

#55

Post by sbr464 »

icebraining wrote: post #35
virmundi wrote: post #28

Earlier quoted context omitted.

I don't trust the EU. They seem to go after companies with deep pockets when they need money. Look at the Google Android controversy lately. Nokia, any EU phone creator (are there any?), any EU phone creator that wants to get in the market can all create a phone that is not Android. Google traded the OS for install preference rather than money. It's called bartering. The EU let this go for years. Now Alphabet has mon…

If an EU citizen steps foot in the sovereign territory of another country, the EU says that all their privacy laws apply. That's not true. The GDPR doesn't apply to citizens of the EU, but to people in the EU or services performed there.

If I read correctly, GDPR does apply when non-EU companies market services specifically to people from the EU. For example a US based hotel deploying a targeted marketing campaign in the EU. I could be wrong.

Re: Short-Run Effects of GDPR on Technology Venture Investment

#56

Post by BurningFrog »

mellett68 wrote: post #11

It's fun when people complain about having to handle personal data properly and not to collect more than they need. Bad luck, be responsible.

This comment assumes GDRP is a perfect and fair legislation that achieves its stated goals with no averse side effects.

Re: Short-Run Effects of GDPR on Technology Venture Investment

#57

Post by icebraining »

sbr464 wrote: post #55
icebraining wrote: post #35

Earlier quoted context omitted.

If an EU citizen steps foot in the sovereign territory of another country, the EU says that all their privacy laws apply. That's not true. The GDPR doesn't apply to citizens of the EU, but to people in the EU or services performed there.

If I read correctly, GDPR does apply when non-EU companies market services specifically to people from the EU. For example a US based hotel deploying a targeted marketing campaign in the EU. I could be wrong.

Yes, you're right; the distinction I was making is that it's about their presence in the EU, not their citizenship. In fact, an American citizen living in the EU is also covered, whereas an EU citizen living in the US is not.

An in fact, it's even less than that: the site only has to care if they target people in the EU (not necessarily exclusively) or if they're tracking behaviours. Simply being accessible online doesn't mean it has to comply, whereas e.g. accepting Euro payments probably does.

Re: Short-Run Effects of GDPR on Technology Venture Investment

#58

Post by sbr464 »

icebraining wrote: post #57
sbr464 wrote: post #55

Earlier quoted context omitted.

If I read correctly, GDPR does apply when non-EU companies market services specifically to people from the EU. For example a US based hotel deploying a targeted marketing campaign in the EU. I could be wrong.

Yes, you're right; the distinction I was making is that it's about their presence in the EU, not their citizenship. In fact, an American citizen living in the EU is also covered, whereas an EU citizen living in the US is not. An in fact, it's even less than that: the site only has to care if they target people in the EU (not necessarily exclusively) or if they're tracking behaviours. Simply being accessible online do…

That's interesting, didn't know that about foreign citizen coverage.

Re: Short-Run Effects of GDPR on Technology Venture Investment

#59

Post by t_fatus »

germanyhater wrote: post #8

EU is a nightmare for any startup. Instead of developing new products, you have to spend >50% of your time just to comply with all those laws. and it keeps coming. Soon, every company will also be required to build copyright filter for all uploaded media files (content-id)...

You have EU funds to help bootstrap your company, either directly or via subsiding the institution which is funding you (even if it can be harmful), cheap or even free medical services for when you're getting sick and you don't have any insurance since you've put all your money in your startup. Allowing people to come to work for you without having to handle the visa nightmare means you're not giving them insanely hight amounts of money every months. Price for incorporation is <1000$ in almost every EU country. Your employees don't have to pay taxes on stocks they haven't sold yet. There are some upsides too.

Re: Short-Run Effects of GDPR on Technology Venture Investment

#60

Post by virmundi »

dasil003 wrote: post #37
virmundi wrote: post #28

Earlier quoted context omitted.

I don't trust the EU. They seem to go after companies with deep pockets when they need money. Look at the Google Android controversy lately. Nokia, any EU phone creator (are there any?), any EU phone creator that wants to get in the market can all create a phone that is not Android. Google traded the OS for install preference rather than money. It's called bartering. The EU let this go for years. Now Alphabet has mon…

I find it shocking how quick some people are to denounce government intervention these days. Are you seriously not concerned about Google’s market clout and the amount of data they have? Thank god the EU is there to temper their entitlement a bit. Meanwhile you’re sitting here daydreaming about how your startup is going to be so big EU regulators are going to come after you. Well that would be an excellent problem to…

I don’t care about Google’s clout. I use them for less and less and where I use them I don’t care.

I use them for email. My email is essentially a curated spam folder. I seldom use it for anything of value. When I do use it, I could care less if the information was made public.

I use it for online storage,but again for nothing important. If I lost it all tomorrow my only care would be an outstanding, meaning not yet turned on, assignment for my ML class.

Everything else I accept in trade: my data for their service. I use Google Maps. I accept that when I’m driving they will track me. I hope they do. I want to know if I should get off the interstate due to a traffic issue.

I don’t watch TV. I have Ad Guard filtering at the network router level. I block Facebook and Twitter there too. I don’t use porn. All Google knows is that I’m a particularly boring human being that probably purchased a dobro given my uptick in how to play the dobro videos. They probably also infer I have mild body dismorphia given some Sapien Medicine videos/sounds I listen too regularly.

All this I, a consenting adult, allow them to know in trade for their service. If you don’t like them, there are free means to thwart them. Google will provide you the means to figure this out with their search. As a result, no I don’t care for this kind of worthless handwringing.

Go after the leaks at the credit agency. I have no choice but to participate with them. No banner would allow me to opt out.

Don’t go after some social media company that we all know is going to sell your data that you traded to get their service. We scientifically know that social media is bad for us all. Why regulate straws when that pandora’ Box of depression is allowed to continue? Grow up. Be an adult. Take responsibility for your choices and entitlement.

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