Skip to main content

If data is the new oil, are tech companies robbing us blind?

sharing data between phones
Sigrid Olsson/PhotoAlto/Getty Images
Data is the new oil, or so the saying goes. So why are we giving it away for nothing more than ostensibly free email, better movie recommendations, and more accurate search results? It’s an important question to ask in a world where the accumulation and scraping of data is worth billions of dollars — and even a money-losing company with enough data about its users can be worth well into the eight-figure region.

The essential bargain that’s driven by today’s tech giants is the purest form of cognitive capitalism: users feed in their brains — whether this means solving a CAPTCHA to train AI systems or clicking links on Google to help it learn which websites are more important than others. In exchange for this, we get access to ostensibly “free” services, while simultaneously helping to train new technologies which may one day put large numbers of us out of business.

This problem becomes more crucial in a world in which AI is threatening jobs.

Viewed uncharitably, companies like Google and Facebook can appear almost like the unscrupulous oil man Daniel Plainview from Paul Thomas Anderson’s 2007 movie, There Will Be Blood; offering little more than tokenistic gestures in exchange for what amounts to a goldmine.

“The defense of this practice is that these companies provide ‘free’ services, and that they deserve some reward for their innovation and ingenuity,” Dr. John Danaher, a lecturer at the School of Law at NUI Galway, who writes about the intersection of the law and emerging technology, told Digital Trends. “That may well be true, but I would argue that the rewards they receive are disproportionate. The other defense is that many companies provide for some revenue-sharing agreements with more popular users, such as YouTube. That’s becoming more true, too, but it’s only a handful of users who can make decent money from this.”

This problem becomes more crucial in a world in which AI is threatening jobs. According to a famous 2013 study carried out by the U.K.’s Oxford Martin School, 47 per cent of jobs in the U.S. are susceptible to automation within the next 20 twenty years. Could rethinking the way that data is gathered — and, more crucially, remunerated — offer one possible solution?

Paid for your data

In an age in which concepts like universal basic income are increasingly widely discussed, one of the most intriguing solutions is one first put forward by virtual reality pioneer Jaron Lanier. In his book Who Owns the Future?, Lanier suggests that users should receive a micropayment every time their data is used to earn a company money.

data typing
Manuel Breva Colmeiro/Getty Images
Manuel Breva Colmeiro/Getty Images

For example, consider the user who signs up to an online dating service. Here, the user provides data that the dating company uses to match them with a potential data. This matching process is, itself, based on algorithms honed by the data coming from previous users. The data resulting from the new user will further perfect the algorithms for later users of the service. In the case that your data somehow matches someone else successfully in a relationship, Lanier says you would be entitled to a micropayment.

In scenarios like this, a formula could easily be established to determine both where data originated and how important the data was in shaping certain decisions. Not all data is created equal. While some of the systems human data helps train just requires us to click a link or upvote a comedy special, other types require high levels of expertise. One illustration of this is translating a document from one language to another. Although tools like Google Translate are increasingly effective, the reason these machines are able to work as they do is because they draw on data that was previously provided by human users. That means taking individual words and phrases that have been painstakingly matched up previously by human translators, and then applying these micro-translations to new pieces of text.

Translation isn’t about literally translating each word in turn, as illustrated by the (possibly apocryphal) story of early machine translation systems which turned, “The spirit is willing, but the flesh is weak” into, “The liquor is holding out all right, but the meat has spoiled,” or “Out of sight, out of mind” into “Invisible idiot.” In his introduction to the English translation of Dante’s Inferno, translator John Ciardi likens good translation to playing the same tune on two different instruments. “When the violin repeats what the piano has just played, it cannot make the same sounds and it can only approximate the same chords,” he writes. “It can, however, make recognizably the same ‘music,’ the same air. But it can only do so when it as faithful to the self-logic of the violin as it is to the self-logic of the piano.”

At present, translators are not paid for the overwhelming bulk of their translation tasks. Hanna Lützen, who translates the Harry Potter books into Danish gets paid for that particular job by a publishing house, but Google then pays her nothing if those combined 1 million+ words help make its language translation system smarter so it can translate your love letter to a girlfriend in Denmark. With a universal micropayment system, it may be possible for certain types of data to carry higher remuneration than others — much as a lawyer currently commands a higher hourly rate than a bricklayer.

A moral, not legal argument

While it sounds an extreme proposal, in some ways a revenue split such as this is no different to the one currently offered by companies like Apple and Google to the content creators who help prop up their services. As John Danaher notes, YouTube personalities are rewarded for the number of viewers they can attract to their videos, because this helps make Google money. Apple gives developers 70 percent of money they generate in the App Store, since this drives more people to use Apple’s services. Micropayments would be this, but on a more widespread basis. The amount of money per usage of data would be tiny, but — combined — it could add up to a reasonable amount.

This micropayment idea isn’t wholly without legal precedent, and isn’t totally dissimilar to the way musicians are paid when their music is “sampled” by another artist. This also once sounded an unlikely idea, but has now been the subject of successful lawsuits — such as when German electronica band Kraftwerk argued in court that even a few bars of a drum beat was sufficient to be protected by copyright.

Laws are still catching up with the realities of new digital technology.

Precedents like the E.U.’s “right to be forgotten” ruling against Google show how laws are still catching up with the realities of new digital technology. But according to John Danaher, enforcing this may be a tough legal case to argue.

“The case I would make against the practice is moral, not legal,” Danaher continued. “General rules of contract law are taken to apply to the agreements that users click when signing up for a service like Facebook. As long as Facebook draws the user’s attention to their terms and conditions, and as long as those terms and conditions do not breach public policy and unfair terms rules, they are held to be binding on the user. In my opinion, this just shows the inadequacy of current approaches to contract law, since it is well-known that people are willing to accept even the most outlandish terms and conditions.” (During a 2014 experiment, unwitting participants in London agreed to give up their eldest child by agreeing to public Wi-Fi terms.)

This wouldn’t necessarily be bad news for companies though. While it would initially cut into the profits made by tech giants, such a scheme could also encourage greater levels of engagement with services. If using internet services — and therefore helping make them smarter and their creators more competitive in the marketplace — was able to provide a living wage it would likely have a significant impact on the number of users using a particular service.

Users, on the other hand, would get a new robot-proof (for now!) job out of the equation. Everyone’s a winner. Right?

Luke Dormehl
Former Digital Trends Contributor
I'm a UK-based tech writer covering Cool Tech at Digital Trends. I've also written for Fast Company, Wired, the Guardian…
Juiced Bikes offers 20% off on all e-bikes amid signs of bankruptcy
Juiced Bikes Scrambler ebike

A “20% off sitewide” banner on top of a company’s website should normally be cause for glee among customers. Except if you’re a fan of that company’s products and its executives remain silent amid mounting signs that said company might be on the brink of bankruptcy.That’s what’s happening with Juiced Bikes, the San Diego-based maker of e-bikes.According to numerous customer reports, Juiced Bikes has completely stopped responding to customer inquiries for some time, while its website is out of stock on all products. There are also numerous testimonies of layoffs at the company.Even more worrying signs are also piling up: The company’s assets, including its existing inventory of products, is appearing as listed for sale on an auction website used by companies that go out of business.In addition, a court case has been filed in New York against parent company Juiced Inc. and Juiced Bike founder Tora Harris, according to Trellis, a state trial court legal research platform.Founded in 2009 by Harris, a U.S. high-jump Olympian, Juiced Bikes was one of the early pioneers of the direct-to-consumer e-bike brands in the U.S. market.The company’s e-bikes developed a loyal fandom through the years. Last year, Digital Trends named the Juiced Bikes Scorpion X2 as the best moped-style e-bike for 2023, citing its versatility, rich feature set, and performance.The company has so far stayed silent amid all the reports. But should its bankruptcy be confirmed, it could legitimately be attributed to the post-pandemic whiplash experienced by the e-bike industry over the past few years. The Covid-19 pandemic had led to a huge spike in demand for e-bikes just as supply chains became heavily constrained. This led to a ramp-up of e-bike production to match the high demand. But when consumer demand dropped after the pandemic, e-bike makers were left with large stock surpluses.The good news is that the downturn phase might soon be over just as the industry is experiencing a wave of mergers and acquisitions, according to a report by Houlihan Lokey.This may mean that even if Juiced Bikes is indeed going under, the brand and its products might find a buyer and show up again on streets and trails.

Read more
Volkswagen plans 8 new affordable EVs by 2027, report says
volkswagen affordable evs 2027 id 2all

Back in the early 1970s, when soaring oil prices stifled consumer demand for gas-powered vehicles, Volkswagen took a bet on a battery system that would power its first-ever electric concept vehicle, the Elektro Bus.
Now that the German automaker is facing a huge slump in sales in Europe and China, it’s again turning to affordable electric vehicles to save the day.Volkswagen brand chief Thomas Schaefer told German media that the company plans to bring eight new affordable EVs to market by 2027."We have to produce our vehicles profitably and put them on the road at affordable prices," he is quoted as saying.
One of the models will be the ID.2all hatchback, the development of which is currently being expedited to 36 months from its previous 50-month schedule. Last year, VW unveiled the ID.2all concept, promising to give it a price tag of under 25,000 euros ($27,000) for its planned release in 2025.VW CEO Larry Blume has also hinted at a sub-$22,000 EV to be released after 2025.It’s unclear which models would reach U.S. shores. Last year, VW America said it planned to release an under-$35,000 EV in the U.S. by 2027.The price of batteries is one of the main hurdles to reduced EV’s production costs and lower sale prices. VW is developing its own unified battery cell in several European plants, as well as one plant in Ontario, Canada.But in order for would-be U.S. buyers to obtain the Inflation Reduction Act's $7,500 tax credit on the purchase of an EV, the vehicle and its components, including the battery, must be produced at least in part domestically.VW already has a plant in Chattanooga, Tennesse, and is planning a new plant in South Carolina. But it’s unclear whether its new unified battery cells would be built or assembled there.

Read more
Nissan launches charging network, gives Ariya access to Tesla SuperChargers
nissan charging ariya superchargers at station

Nissan just launched a charging network that gives owners of its EVs access to 90,000 charging stations on the Electrify America, Shell Recharge, ChargePoint and EVgo networks, all via the MyNissan app.It doesn’t stop there: Later this year, Nissan Ariya vehicles will be getting a North American Charging Standard (NACS) adapter, also known as the Tesla plug. And in 2025, Nissan will be offering electric vehicles (EVs) with a NACS port, giving access to Tesla’s SuperCharger network in the U.S. and Canada.Starting in November, Nissan EV drivers can use their MyNissan app to find charging stations, see charger availability in real time, and pay for charging with a payment method set up in the app.The Nissan Leaf, however, won’t have access to the functionality since the EV’s charging connector is not compatible. Leaf owners can still find charging stations through the NissanConnectEV and Services app.Meanwhile, the Nissan Ariya, and most EVs sold in the U.S., have a Combined Charging System Combo 1 (CCS1) port, which allows access to the Tesla SuperCharger network via an adapter.Nissan is joining the ever-growing list of automakers to adopt NACS. With adapters, EVs made by General Motors, Ford, Rivian, Honda and Volvo can already access the SuperCharger network. Kia, Hyundai, Toyota, BMW, Volkswagen, and Jaguar have also signed agreements to allow access in 2025.
Nissan has not revealed whether the adapter for the Ariya will be free or come at a cost. Some companies, such as Ford, Rivian and Kia, have provided adapters for free.
With its new Nissan Energy Charge Network and access to NACS, Nissan is pretty much covering all the bases for its EV drivers in need of charging up. ChargePoint has the largest EV charging network in the U.S., with over 38,500 stations and 70,000 charging ports at the end of July. Tesla's charging network is the second largest, though not all of its charging stations are part of the SuperCharger network.

Read more