US should regulate big tech like Europe: Alan Patricof
As big tech companies come under increased scrutiny for potential privacy violations – both Facebook and Google were in the spotlight this year for inadvertently allowing third parties to access users’ personal information – some are beginning to call for more regulatory oversight.
That includes Alan Patricof, the co-founder of private equity firm Greycroft and one of the first investors in Apple. Patricof suggested the U.S. mirror tech oversight after the General Data Protection Regulation (GDPR), a European Union law that gives individuals control over their own personal data.
“All the American companies are operating over there, and they’re all operating under those rules,” Patricof said on Wednesday during an interview with FOX Business’ Stuart Varney. “So, my basic impression is that those rules have been accepted by the industry.”
Under the GDPR, which was passed in 2016 and became law in 2018, any tech company needs to disclose its data collection; the purpose for doing so; how long it the data will be retained; and whether the data will be shared with any third parties.
If companies do detect data breaches, they must report it within 72 hours if it could violate users’ privacy. Companies that violate the law risk a fine of 20 million euros (more than $22.7 million).
So far, companies operating in Europe have largely adapted to the oversight, Patricof said.
“I think whatever rules there have to take into consideration, they can’t be favorable to the FANG companies and hurt small companies,” he added. “They’ve got enough problems right now breaking through the sound barrier of the control the big companies have over advertising.”