Does prioritizing user data protection harm the profits of large companies?

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Summary

The LGPD (Brazilian General Data Protection Law) is here to stay. The demand for regulation in how companies handle personal data resulted in the creation of the GDPR and subsequently, the General Data Protection Law. And although this attention to the subject is essential, companies have experienced firsthand what it's like to depend on consent to target their advertising.

Power is being given to the population, which is increasingly equipped with the knowledge to challenge what is wrong and seek its rights. And with the issue of... data privacy is no different.

Among the various guidelines imposed by LGPDOne of them clearly concerns the power of decision – which must be within the reach of the data subjects – regarding what data can be collected, for how long it can be used, and whether it can be collected at all.

Furthermore, being the privacy today one fundamental rightthe holder may also revoke consent given at any time, and companies cannot object to it.

iOS privacy features help users, but have reduced company profits.

Since the resource ATT (App Tracking Transparency) was introduced by iOS 14.5Apple has been accused by giants such as Meta, to harm small businesses that depend on ad targeting due to the possibility of blocking tracking on their devices.

It is estimated that advertising expenses have become higher for small advertisers, while profits have fallen by about 13% since the feature was implemented.

However, advertising services like Google Search and Apple Search Ads have seen their profits increase considerably, since these services do not depend on the collection of personal data gathered by third parties for their operation.

Apple's feature allows users to decide whether or not they want their data to be collected by applications, and also allows them to request consent for data tracking.

Studies by AppsFlyer have found that 62% of users have refused to give their consent, directly affecting the targeting of ads by companies like Facebook.

Marlon Luft, Latam marketing director at AppsFlyer, said at the time of the survey: "Because it's an optional mechanism and a simple tool for obtaining user consent, apps can choose not to show it. Six months after the release of iOS 14.5, almost 65% of apps have implemented the feature, and that number is expected to increase to 75% next year."

The fact is that the progress made in data protection and privacy is not going to regress. It is up to companies to find ways to continue their advertising without infringing on the user's right to navigate the virtual world without being tracked or having their data collected and used without their consent.

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