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Your Personal Information Is Now the World's Most Valuable Commodity (www.cbc.ca)
"Data is clearly the new oil," says Jonathan Taplin, director emeritus of the USC Annenberg Innovation Lab and the author of Move Fast and Break Things: How Google, Facebook and Amazon Cornered Culture and Undermined Democracy. While oil was the world's most valuable resource, it has been surpassed by data, as evidenced by the five most valuable companies in the world today -- Apple, Amazon, Facebook, Microsoft and Google's parent company Alphabet. CBC.ca reports: What "the big five" are selling -- or not selling, as in the case of free services like Google or Facebook -- is access. As we use their platforms, the corporate giants are collecting information about every aspect of our lives, our behavior and our decision-making. All of that data gives them tremendous power. And that power begets more power, and more profit. On one hand, the data can be used to make their tools and services better, which is good for consumers. These companies are able to learn what we want based on the way we use their products, and can adjust them in response to those needs. Access to such sweeping amounts of data also allows these giants to spot trends early and move on them, which sometimes involves buying up a smaller company before it can become a competitive threat. Pasquale points out that Google/Alphabet has been using its power "to bully or take over rivals and adjacent businesses" at a rate of about "one per week since 2010." But it's not just newer or smaller tech companies that are at risk, says Taplin. "When Google and Facebook control 88 per cent of all new internet advertising, the rest of the internet economy, including things like online journalism and music, are starved for resources."
Traditionally, this is where the antitrust regulators would step in, but in the data economy it's not so easy. What we're seeing for the first time is a clash between the concept of the nation state and these global, borderless corporations. A handful of tech giants now surpass the size and power of many governments.
Traditionally, this is where the antitrust regulators would step in, but in the data economy it's not so easy. What we're seeing for the first time is a clash between the concept of the nation state and these global, borderless corporations. A handful of tech giants now surpass the size and power of many governments.
I agree, my proof:
If my data is so valuable, why am I not being compensated for it?
You are. You receive free services on sites that offer social networks, search engines, and other value, in exchange for your participation.
The catch: you are the product that they sell.
Some aspects of this new industry are commendable. Finding out what someone likes is a step towards showing them things that they want, and not showing them things they don't -- like a good shopkeeper who knows the customers who patronize her/his business.
But this also means we need a new kind of consumer advocacy and protection: the kind that makes sure the consumer benefits, and is not harmed, by sharing information. That is not easy to balance, but I think it will be crucial to do in the years to come.
If it weren't for deadlines, nothing would be late.
Why base it on market capitalization? As the dot-com bubble showed, that's an extremely variable and unreliable way to measure a company's success.
Based on annual revenue - you know, how much these companies actually sell, which seems like a more relevant measure if you're talking about how valuable their product is - the listed companies rank:
#9 Apple
#26 Amazon
#65 Alphabet
#69 Microsoft
#393 Facebook
The top ten companies based on revenue are:
#1 Walmart (retail)
#2 State Grid (Chinese electricity utility)
#3 Sinopec Group (oil)
#4 China National Petroleum (oil)
#5 Toyota Motor (auto)
#6 Volkswagen (auto)
#7 Royal Dutch Shell (oil)
#8 Berkshire Hathaway (finance)
#9 Apple (tech)
#10 Exxon Mobil (oil)
So based on value of sales, the world's most valuable commodity remains oil.
The top ten companies based on profit are:
#1 Apple (tech)
#2 JP Morgan Chase (finance)
#3 Berkshire Hathaway (finance)
#4 Wells Fargo (finance)
#5 Gilead Sciences (pharmaceuticals)
#6 Verizon (telecom)
#7 Citigroup (finance)
#8 Alphabet (tech)
#9 Exxon Mobil (oil)
#10 Bank of America (finance)
So based on profit, the world's most valuable commodity is financial services.
Revenue = how much you actually sell
Profit = how strong your sales are (delta between supply and demand)
Market cap = investors (including clueless ones) placing bets