- California voters just passed Prop 24, a voting measure that expands the state’s existing privacy law and shrinks the amount of data that major tech companies are allowed to collect about citizens.
- Laws make it difficult for Facebook and Google to track people’s activities through third parties, experts told Business Insider, which could make many of the tech giants’ advertising business models. obsolete.
- Although Prop 24 only goes into effect in California, it would effectively apply to the entire United States because of the state’s enormous impact on the tech industry.
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A new law passed by California voters in the November election would set an unprecedented standard of digital privacy in the US, making it difficult for big tech companies like Facebook and Google to track their data. everybody.
The Consumer Privacy Act, also known as Prop 24, is on track to be passed in California on Wednesday morning, with 56% of voters supporting the bill and more than three-quarters of its vote already check.
The law will strengthen existing privacy measures in California, allowing consumers to prevent businesses from selling or sharing their personal information including race, religion, genetic information, or geographic location. and sexual orientation.
It will also impose stricter restrictions on how websites track your data in order to sell that information to advertising partners. Google and Facebook ̵1; two of the biggest players in online advertising – are currently collecting personal data collected by third-party websites to enhance the advertising products they make up. most of their revenue.
Prop 24 could prevent companies like Facebook and Google from effectively collecting that data, which could change their business model and cut down on their existing revenue streams, experts comply. Privacy custody told Business Insider.
“The third-party ad technology industry will need to evolve … otherwise, their business models risk becoming obsolete,” said Heather Federman, vice president of privacy and policy at BigID, a data privacy compliance company, said.
A Facebook spokesperson did not provide comment on the profile when contacted by Business Insider. A Google spokesperson did not immediately respond to Business Insider’s request for comment. No company has publicly taken a stance on Prop 24.
The law comes as the business models of the online advertising giants face other new threats. Apple is planning to update its iPhone software to allow users to opt out of the ad tracker, which Facebook has vehemently opposed. Web browsers including Chrome, Safari and Firefox are implementing similar tools to allow users to choose not to follow, which could cut advertisers’ revenue.
Prop 24 will come into effect as of 2023. Before that happens, California regulators are expected to provide more details on how it will be enforced, which could be expected. its impact on major tech companies.
Although potentially damaging the advertising revenues of major tech companies, Prop 24 has received support from a number of privacy-advocating tech business leaders, including former Democratic presidential candidate Andrew Yang, who argues that law is needed to give people more control over their data.
Raju Vegensa, principal evangelist at global software company Zoho, said he hopes both private and government companies will continue to hunt for third-party ad trackers for concerns about increased privacy from consumers. Vegensa added that Zoho removed third-party trackers from its websites in July.
“That means we keep the money on the table, but just because it doesn’t mean you have to take it,” Vegensa said in an email to Business Insider. “The privacy limit for most countries will come when they realize how much data big tech companies like Google have been collecting about their citizens and as a government. There is nothing they can do. ”
Some privacy advocates have argued the law doesn’t go far enough, instead calling on Congress to pass a privacy law that sets a single national standard. Commercial ad groups have similarly complained, Adweek reports – they think more laws should be passed to protect consumer privacy, but should be drafted instead. at the national level.