Rewriting European privacy law for digital age

Rewriting European privacy law for digital age

January 31, 2010 by Sophie Estienne Enlarge

European legislation covering the protection of private data is being dragged into the digital age in a potential threat for social networking sites like Facebook where users display foibles, often without a thought for consequences.

European legislation covering the protection of private data is being dragged into the digital age in a potential threat for social networking sites like Facebook where users display foibles, often without a thought for consequences.
 

European Commissioner Viviane Reding cited the arrival of privacy issues raised by such social networking sites when she announced last week a flagship drive to rewrite European law for the Internet generation, turning the old 1995 text into something fit for purpose.

Data protection for private citizens is a sensitive issue in Brussels, which has been in conflict with the United States for years seeking greater controls on personal details gathered under anti-terror drives there.

The European regulators have also successfully pushed web and computing giants Google, Yahoo! and Microsoft to reduce the length of time they hold details that can be classed as personal, such as browser logs.

One of Microsoft's directors, Brad Smith, came to Brussels last week to call for "an advanced framework of privacy and security that is more closely aligned with the ways in which not only computing, but also the interaction between people, is evolving."

All the more necessary as the computer world -- and already public authorities in the US at least -- switches increasingly towards 'cloud' computing, which essentially means the storage of data in shared servers over the Internet.

Clear rules are needed to avert the sort of polemic that erupted around Google's 'Street View' application -- where entire cities are photographed for 'walk-through' online appreciation -- or around each change to confidentiality rules implemented by Facebook.

Canada this week opened a fresh probe into the leading social networking site, following its December decision to no longer allow members -- who number more than 200 million worldwide -- to hide certain details including pictures and personal profile, including lists of 'friends' or group memberships.

Facebook founder Mark Zuckerberg defended the move this month saying "social norms" had changed when it came to what individuals were willing or eager to share.

"In the last five or six years, blogging has taken off in a huge way and all these different services that have people sharing all this information," he said.

"People have really gotten comfortable not only sharing more information and different kinds, but more openly and with more people."

But the result is that Internet searches can bring up very personal details, with studies repeatedly showing how recruiters use these services to 'vet' potential candidates.

A recent addition, by researchers Cross-Tab, shows that 41 percent of recruiters said they had already refused candidates because of details about their lifestyles picked up through this medium. The figure hit 70 percent in the US.

Comments posted online and "inappropriate" pictures or videos can all trigger worries over lifestyle.
Recruiters "are for the most part comfortable searching for information that would be unethical or even illegal to ask a candidate to provide," the authors underlined.

(c) 2010 AFP

Toyota Recall Is Moment to Counter China’s Rise

Commentary by William Pesek

Feb. 1 (Bloomberg) -- Naoto Kan isn’t alone in his “sense of sadness.” He shares it with 126 million Japanese.

Japan’s finance minister is blue over how quickly China is gaining on Asia’s biggest economy. Two years ago, anyone who said China would overtake Japan in 2010 was laughed into submission. Fantasy may soon become reality and the Japanese media can’t churn out enough dire stories about it.

“Generally speaking, it’s a good thing that China and Asia are growing and Japan needs to make efforts to ensure it can benefit from that,” Kan, 63, told reporters in Tokyo last month. “Coming from a generation that experienced high growth, my honest feeling is a sense of sadness.”

Far from being sad, Kan should see this moment for what it really is: one that shakes Japan out of its 20-year slumber.

PricewaterhouseCoopers LLP’s recent prediction that China will overtake the U.S. as the largest economy by 2020 is the talk of Tokyo. It’s shock enough for Japan to fathom playing second fiddle in Asia, never mind China being the globally dominant power 10 years from now. Expect a corresponding surge in sake and whiskey sales around Japan.

Adding insult to injury, the great Toyota Motor Corp. is recalling cars in China, and Japan Airlines Corp. is bankrupt. Add in deflation and the threat of a Standard & Poor’s downgrade and it’s hard not to conclude 2010 is getting off to a dreadful start for Japan.

Silver Lining

The silver lining is the China effect. On the face of it, China’s economy should be larger than Japan’s -- its population is almost 11 times bigger. If China’s currency weren’t 40 percent or so undervalued, it would already be No. 2. As many in Japan say, though, size will matter more when China matches Japan on a per-capita income basis. Japan’s is 13 times China’s.

That’s many a year off, of course. As the process unfolds, Japan could be well-positioned to benefit. What’s so bad about having a massive economy growing 10 percent in your neighborhood? With the U.S. consumer limping along, Japan needs all the demand for exports it can find.

Policy makers in Tokyo are officially out of reasons to delay the radical change Japan needs. To date, they have had more than their share of warnings: the collapse of the 1980s bubble economy, the “Lost Decade” of the 1990s, the Asian crisis in 1997, the U.S. credit meltdown, you name it. They just haven’t answered them, opting to add more debt and yen to punt big reforms forward.

Chinese Jolt

China is a jolt that Japan can’t manage around. Muddling through isn’t an option when the largest manufacturer and exporter is bearing down on you. Also, China is now the U.S.’s main creditor, reducing Japan’s leverage in Washington.

Amid all this China buzz, Japan is left to grapple with uncompetitive labor costs, a rapidly aging population and dwindling fiscal options. If Japanese officials intend to hit the snooze bar and sleep in for a few more years, S&P is standing by to give it a nudge.

S&P last week lowered the outlook on Japan’s AA sovereign credit rating to negative because of diminishing flexibility to cope with the world’s largest public debt. China is making the world quake because of its $2.4 trillion of currency reserves. Japan is spooking the world with its financial frailty.

Stability in China isn’t a given. The immediate risk is overheating. The longer-term problem, the one on which hedge- fund managers are fixated, is that today’s loans may turn sour tomorrow. China must get more serious about asset bubbles and narrowing the gap between rich and poor.

Filling the Void

Even moderate growth from China may help fill the void left by the highly leveraged U.S. consumer. Japanese Prime Minister Yukio Hatoyama is mending ties with China, whose global influence is increasing as America’s declines. Japan still needs the U.S. for security reasons, yet economic realities are drawing its attention toward Asia.

One example of how China could be the catalyst that has eluded Japan is services. An obsession with manufacturing means Japan neglects its services industry, which is a far bigger part of the economy. China’s threat will focus attention where it needs to be: deregulating services and increasing productivity.

And don’t count Toyota and JAL out in the long run. Toyota seems to be taking a page from Johnson & Johnson’s playbook with its total recall. In 1982, J&J pulled millions of bottles of Extra Strength Tylenol from store shelves after someone in the Chicago area put cyanide in the capsules, resulting in seven deaths. The recall restored J&J’s reputation. We could very well be witnessing Toyota’s Tylenol moment.

JAL is now in the hands of electronics tycoon Kazuo Inamori after last month’s bankruptcy filing. His powerful political connections and maverick ways could give him the means to shake up Asia’s biggest carrier by sales in ways that none of his predecessors dared.

China’s great economic leap forward is in many ways a good- news story for corporate Japan. Officials such as Kan clearly hear the alarm bells in their midst and must act accordingly. With China’s arrival, sleeping on the job isn’t an option.

To contact the writer of this column: William Pesek in Tokyo at +81-3-3201-7570 or wpesek@bloomberg.net
To contact the editor responsible for this column: James Greiff at +1-212-617-5801 or jgreiff@bloomberg.net

Google’s ‘Don’t Be Evil’ Mantra is ‘Bullshit,’ Adobe Is Lazy: Apple’s Steve Jobs

• By John C Abell

After a big public announcement of the sort Apple had this week for the iPad CEO Steve Jobs often takes time in the day or two afterwards to have a Town Hall at One Infinite Loop, making himself available for questions from employees bold enough to stand up and take one right between the eyes.

This time, the big topics included Google and Adobe — no surprises there. Google recently unveiled its own Android-powered handset, the Nexus One, whose release Jan. 5 prompted Jobs to perhaps over-react by announcing on the same day that the iTunes store had served up three billion apps and that “… we see no signs of the competition catching up any time soon.” Apple’s billionth iPhone app download was greeted with great fanfare, but the two billionth not so much, so it felt a tad like Jobs was feeling some heat.

And the absence of Adobe Flash support on the iPhone for three years and counting, and now on the iPad, is either celebrated by users as a poke in the eye of one of the web’s most dextrous tools, or the most over-rated and overused crutch for decent design.

Jobs, characteristically, did not mince words as he spoke to the assembled, according to a person who was there who could not be named because this person is not authorized by Apple to speak with the press.
On Google: We did not enter the search business, Jobs said. They entered the phone business. Make no mistake they want to kill the iPhone. We won’t let them, he says. Someone else asks something on a different topic, but there’s no getting Jobs off this rant. I want to go back to that other question first and say one more thing, he says. This don’t be evil mantra: “It’s bullshit.” Audience roars.

About Adobe: They are lazy, Jobs says. They have all this potential to do interesting things but they just refuse to do it. They don’t do anything with the approaches that Apple is taking, like Carbon. Apple does not support Flash because it is so buggy, he says. Whenever a Mac crashes more often than not it’s because of Flash. No one will be using Flash, he says. The world is moving to HTML5.

The world, of course, includes Google, which last week in a somewhat more modest development bypassed Apple’s iPhone app blockade by unveiling an html5 version of Google Voice, which takes full advantage of mobile Safari on the iPhone. Wired.com found it to be an impressive variation of the app Apple has neither approved nor officially rejected.

And it is, of course, in keeping with Google’s stated view (Android app marketplace notwithstanding) that the future is really in web-based applications and not in mobile apps at all. Web-based applications of the sort html5 makes much more viable.

So, great work rallying the troops, Steve — but be careful what you wish for.