The European Union (EU) has once again demonstrated its commitment to data protection by fining TikTok $379 million for violating the General Data Protection Regulation (GDPR) privacy law. The EU’s lead regulator, the Data Protection Commissioner (DPC) based in Ireland, took action against the Chinese-owned social media company for failing to adequately protect children’s privacy, specifically by defaulting to public settings for user accounts under the age of 16.
This latest move by the EU solidifies its reputation as a no-nonsense authority in data protection. The fines imposed are a clear indication that the EU is taking violations of privacy laws seriously and is willing to hold companies accountable for their actions.
On September 18, the European Commission is set to conduct a high-level digital dialogue with China to foster communication on digital strategy and technological developments. However, it is unlikely that China will align itself with the EU’s regulations anytime soon. Despite this, the EU has highlighted notable progress in innovative technologies, such as Web3 tools, which have the potential to greatly enhance how users manage their data.
A recent policy report published by the European Commission’s Joint Research Centre (JRC) titled ‘Mapping the landscape of data intermediaries: Emerging models for more inclusive data governance’ outlines the EU’s stance on data privacy. The report aims to promote inclusive data governance by showcasing tools that empower users to have greater control over their online footprint.
One such tool highlighted in the report is Swash, a data-focused web3 ecosystem that offers solutions for both users and businesses. Swash’s browser extension is cited as an example of a product that allows data subjects to gain power over their data while also receiving a share of the profits generated.
This is not the first time Swash has gained recognition for upholding data protection rights. The platform underwent a rigorous independent audit by the Data & Marketing Association, becoming the only data union to be named an accredited member. Swash also completed a Data Protection Impact Assessment with the UK’s Information Commissioner’s Office.
The mention of Swash by the European Commission not only illustrates a commitment to exploring options for data protection but also highlights the Commission’s interest in emerging web3 technologies. The growing recognition of the legitimacy and disruptive nature of the web3 landscape has led to the EU’s establishment of a regulatory framework for Crypto-Assets Issuers and Crypto-Asset Services Providers.
The winds of change brought about by web3 technologies are also evident in the European Blockchain Services Infrastructure (EBSI), whose nodes are operated by EU member states. At a recent convention in Barcelona, discussions revolved around the advancement of decentralized governance services.
The EC suggests that Europe has the potential to lead the transition from the platform model of Web 2.0 dominated by tech giants like Google and Facebook to a vibrant European Web3 ecosystem. Swash exemplifies a web3 service where all data transactions are denominated in $SWASH crypto tokens. Additionally, users can contribute the value of their data to social development causes and use it for value exchange through the Data for Good initiative.
In the traditional web2 model, users receive no benefit from the sale of their data. However, with Swash, 70% of the profits made from data sales are distributed to the users. Advertisers can also utilize Swash to address ad fraud and wasted ad spending, delivering ads to fully opted-in, web3-minded users. The theory suggests that users who have given permission to display ads based on their preferences are more likely to engage with the content shown to them.
While data privacy challenges remain, the emergence of web3 is revolutionizing the collection, storage, and sharing of data. Blockchain-native platforms, programmable privacy, decentralized data storage, and user-owned digital identities are replacing the centralized data control of the previous model. The future data economy is being assembled piece by piece, ultimately putting consumers in control of their own data.
In conclusion, the EU’s recent fine of TikTok underscores its commitment to data protection and highlights the effectiveness of the GDPR privacy law. The mention of Swash in the European Commission’s report further emphasizes the EU’s interest in web3 technologies and its commitment to empowering users in the management of their data. The evolution of web3 is gradually shifting control over data from centralized entities to individuals, ushering in a new era of data protection and user-centricity.
