Don't Let This Get Lost In The Shuffle: The Data Transfer Project Is Expanding, And Could Help Create Real Competition Online
from the this-is-important dept
While lots of people are angling to break up the big internet companies in the belief that will lead to more competition, we’ve long argued that such a plan is unlikely to work. Instead, if you truly want more competition you need to end the ability of these companies to lock up your data. Instead, we need to allow third parties access so that the data is not stuck in silos, but where users themselves both have control and alternative options that they can easily move to.
That’s why we were quite interested a year ago when Google, Facebook, Microsoft and Twitter officially announced the Data Transfer Project (which initially began as a Google project, but expanded to those other providers a year ago). The idea was that the companies would make it ridiculously easy to let users automatically transfer their own data (via their own control) to a different platform. While some of the platforms had previously allowed users to “download” all their data, this project was designed to be much more: to make switching from one platform to another much, much easier — effectively ending the siloing of data and (worse) the lock-in effects that help create barriers to competition. As we noted last year:
But the really important thing that this may lead to is not so much about transferring your data between one of the giant platforms, but hopefully in opening up new businesses which would allow you to retain much greater control over your data, while limiting how much the platforms themselves keep. This is something we’ve talked about in the past concerning the true power of data portability. Rather than having it tied up in silos connected to the services you use, wouldn’t it be much better if I could keep a “data bank” of my data in a place that is secure — and where if and when I want to I can allow various services to access that data in order to provide the services I want?
In other words, for many years I’ve complained about how we’ve lost the promise of cloud computing in just building up giant silos of data connected to the various online services. If we can separate out the data layer from the service layer, then we can get tremendous benefits, including (1) more end-user control over their own data (2) more competitive services and (3) less power to dominate everything by the biggest platforms. Indeed, we could even start to move towards a world of protocols instead of platforms.
So it’s good news to see the latest announcement about the project is that it’s expanding once again. While the headlines are that Apple has joined the program (to round out the biggest internet companies) it’s also notable that two other very interesting, but much smaller, players are joining as well: the federated Mastodon project and Tim Berners-Lee’s Solid, which is an attempt to build the kind of “protocols, not platforms” approach that we keep advocating for.
There are still many open questions about how well all of this will work — but if you believe in true competition among internet services this is the project to pay attention to it, as it has the highest likelihood of actually creating such competition. Plans to “break up” big tech just creates a few more data silos and effectively locks in some pre-selected (slightly smaller) giants, thanks to network effects. What the Data Transfer Project does is flip the equation. It makes it so that more competition can thrive without taking away the network effects that make the internet so powerful. It’s the most interesting, and most compelling approach to generating actual competition among internet services.
I still hope that the project goes even further in knocking down silos and opening up for competition, but it’s already quite encouraging. Of course, it got almost no attention at all because anti-trust is sexy, whereas companies opening themselves up to competition through technological means is apparently boring.