It’s often said that “if you’re not paying for the product, you are the product.” For years, the Big Tech giants held to this business model with an idle solidarity, pocketing the cash as users signed away their profitable data rights. Following new privacy protections from Apple and the European Union, however, these elites are suddenly scrambling to save their empire of cards.
As revealed by The New York Times, the titans of the digital industry are predicting devastating revenue loses as a result of new policies giving users greater control over their personal data.
On Wednesday, an earnings report from Meta (formerly known as Facebook) featured its CEO Mark Zuckerberg blaming Apple and the EU for over $10 billion in lost revenue this year alone.
Announcing that Meta will attempt to invest in other revenue models, Zuckerberg acknowledged the reality of the situation: “There’s a clear trend where less data is available to deliver personalized ads.”
Given big tech companies like Meta built their entire platform around personalized ads, the company stock price dropped by more than 26 percent in a matter of days. Or to put this in perspective, Meta saw triple the stock loss than some of Facebook’s most damaging scandals, such as when Cambridge Analytica leaked the personal data of over 50 million Facebook users.
To this day, Meta argues that consumers “prefer to pay with their data rather than their wallets,” using this as some sort of justification to oppose users in their “right to object” to profiteering off their own data. But even the world’s most powerful social media network has its limits, as Meta’s crumbling stock price showcases their reliance on other tech giants such as Apple, the creators of the iPhone, which is an essential product to their entire business.
On top of this, Apple’s power play has suddenly forced the hand of Google, the Android-producing competition, to…