Paying Users for Their Data Would Exacerbate Digital Inequality

Blog post by Eline Chivot: “Writing ever more complicated and intrusive regulations rules about data processing and data use has become the new fad in policymaking. Many are lending an ear to tempting yet ill-advised proposals to treat personal data as traditional finite resource. The latest example can be found in an article, A Blueprint for a Better Digital Society, by Glen Weyl, an economist at Microsoft Research, and Jaron Lanier, a computer scientist and writer. Not content with Internet users being able to access many online services like Bing and Twitter for free, they want online users to be paid in cash for the data they provide. To say that this proposal is flawed is an understatement. Its flawed for three main reasons: 1) consumers would lose significant shared value in exchange for minimal cash compensation; 2) higher incomes individuals would benefit at the expense of the poor; and 3) transaction costs would increase substantially, further reducing value for consumers and limiting opportunities for businesses to innovate with the data.

Weyl and Lanier’s argument is motivated by the belief that because Internet users are getting so many valuable services—like search, email, maps, and social networking—for free, they must be paying with their data. Therefore, they argue, if users are paying with their data, they should get something in return. Never mind that they do get something in return: valuable digital services that they do not pay for monetarily. But Weyl and Lanier say this is not enough, and consumers should get more.

While this idea may sound good on paper, in practice, it would be a disaster.

…Weyl and Lanier’s self-declared objective is to ensure digital dignity, but in practice this proposal would disrupt the equal treatment users receive from digital services today by valuing users based on their net worth. In this techno-socialist nirvana, to paraphrase Orwell, some pigs would be more equal than others. The French Data Protection Authority, CNIL, itself raised concerns about treating data as a commodity, warning that doing so would jeopardize society’s humanist values and fundamental rights which are, in essence, priceless.

To ensure “a better digital society,” companies should continue to be allowed to decide the best Internet business models based on what consumers demand. Data is neither cash nor a commodity, and pursuing policies based on this misconception will damage the digital economy and make the lives of digital consumers considerably worse….(More)”.