Google, Joel Richard Paul, Facebook discussed on Marketplace

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And then at four thirty on all things considered Senator KOMO Harris is running for president as a progressive. But she carries political baggage from her time as California's attorney general a report on here is his back story is coming up in the first segment of all things considered. The program starts at four thirty here on kqed public radio. This is marketplace, I'm KAI Ryssdal. Not great news for Google at a French yesterday. The search company that's really an advertising and data company has been hit with a fifty seven million dollar fine for failing to be transparent about privacy guidelines. It's the first time an individual European Union country is invoked the general data protection regulation. The GDP are in my remember remember them that went into effect last year. I guess it's one right singular regulation anyway. In absolute terms. Fifty seven million dollars is a boatload of money for Google though. Fifty seven million dollars is a vanishingly small fraction of a boatload. So marketplace's into your looked into what kind of fine might actually get a company like that to pay attention for a bit of perspective. Let's say you earn an annual salary of fifty thousand dollars. The find Google has been asked to pay is the equivalent of twenty five bucks. Google. Change in the laundry every month. Often is a professor of media studies at the university of Virginia and is author of books that have been critical of Google and Facebook, he says a couple of things need to happen to make these punishments more effective one defined should be in the billions and not the millions. But beyond that, we really need a regulatory structure that takes the problems of the abuse of personal data. Seriously, biting off and says part of the problem is that it's not just Google and Facebook whose businesses stand to lose from stricter data regulation, AT and T Verizon and Comcast are all in the same boat. Their business models are also based on obtaining in selling your data. So all of those companies Google included have an interest in making sure regulations don't adversely affect their bottom lines. Joel Richard Paul teaches law at the university of California Hastings in San Francisco. He says these companies make so much money from user data that until fines get high enough. They're unlikely to have an incentive to to change the business model, but he says there's enough. Another factor at play even when a fine is relatively small. That's really the reputational damage. Paul says this European fine could act as a signal to consumers that these companies are doing isn't good and Google Facebook and others are more worried about losing users and their data than they are about fines. I mean dealer for marketplace. A quick follow up now to our story last week about mobile payments in the Chinese economy. Some of you had a hard time believing something that are Shanghai. Correspondent Jennifer pack said here's the bottom talking about mobile payment has exploded in China way. More than in the US Americans use mobile payment for more than one hundred billion dollars worth of transactions in two thousand sixteen but that same year in China. We're talking about twenty three trillion dollars your objections went like this. Basically, China's GDP that your two thousand sixteen wasn't even twelve trillion dollars. How can mobile payments be nearly twice that not only can they can they it turns out we actually under reported the dollar amount of mobile transactions in China in two thousand sixteen Jennifer has the explanation at marketplace dot ORG coming up tomorrow on the marketplace morning report, by the way, how about a little taste of global economic elitism with your morning coffee. How about that the World Economic Forum in Davos is on? Last friday. The White House.

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