Reality Check: Press Review With Britta Daffner

We asked

How do consumer expectations of hyper-personalization fit with the growing need for data privacy?

Britta says


It doesn't fit together at all. Humans aren’t always the most logical or rational species. What we actually want doesn't always have much to do with what we say we want.

We're creatures of habit, and we tend towards what's familiar and comfortable. So it's incredibly difficult to take a step backward. To give up all these luxuries - that everything is automatically suggested for us – is difficult, yet we say we don't want to give away our data.

That's why I say companies can't avoid becoming data-driven. What customers respond to, what generates more revenue, is still whatever they like, what’s appealing, and what they click on. And not the things that they are indifferent about.

The question here is whether we’ll eventually come to a point where we rationally and logically make a decision and say "No, we don't want that anymore". Or if regulators really take action to stop further progress here, and data chains are broken. Perhaps the world is moving in this direction. I don't think that's going to happen in the near future, however, because there's just too much comfort in it.

We asked

Does the Digital Markets Act really ensure fair competition and more opportunities for small businesses?

Britta says


Here we have exactly the problem with data privacy on the one hand and unfair competition on the other. Today's business models are based on data, and yet it's becoming increasingly difficult for smaller companies that haven't built up enough market power to enter these scalable models.

I don't think these regulatory schemes are making an impact yet. I don't see any major active limitations. What we actually have, for now, is more transparency. There are also more obligations, in terms of how data must be stored, and how information must be provided. But I haven’t seen much in the way of concrete consequences, or whether large tech companies will be affected by this. 

So I think this is a first step in the right direction to show transparency. But I don't think it will be a game-changer. For that, we need stronger regulations, in some cases maybe even breaking up companies.

The problem is that small and medium companies have made little use of data to fight the big players. It would be inaccurate to say that there is no one doing this. But I keep looking - where are the great examples in Germany that use data-driven business models? And I have to say quite frankly, there are few examples. I haven’t yet seen a notable example where a typical German company has imposed a really new data strategy, a new business model, or a completely new product, based on this new data economy.

I’d like to see a much stronger awareness of data-based business models, and for both small and large companies to develop a vision of where they want to go.

We asked

How interested is Google in the topic of data privacy, and what does a world without third-party cookie tracking look like?

Britta says


I can imagine that Google is coming under increasing criticism. This is due to the use of a business model built with data, and because more and more people are jumping on the privacy bandwagon, and don't want to give away so much data. So the focus on data privacy is a necessary development for companies like Google.

As Google only wants to ban third-party cookies, it looks to me like a big disadvantage for third-party vendors in the future. This could make it even harder to get that data from the outside. Because of course - Google has the power as they have the data. So I can imagine that with the elimination of third-party cookies, it will be difficult for other people who don't have that data.

This is a very exciting topic, and again it puts Google in a position to be a frontrunner and innovate on new solutions. That's a bit like ‘Apple mode’, which often replaces existing standards with something new.