Facebook and WhatsApp: German regulations concerning privacy

29

September

2016

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Social media is becoming bigger and bigger. This can be recognized in the number of user of several social media platforms. According a study of Newcom Research and Consultancy, 9 out of 10 Dutch people that are 15 years or older are active on social media. According to Statista, the number of active users of social media network was 2.15 billion in 2015 and it is estimated that this will increase to 2.95 billion in 2020.

tabel 1

Worldwide number active users of social media, and a prediction for the future in number of users in billions

The revenue model of social media platforms is based on the data that this platforms collect from its users. This data can be used for personalized advertising. Worldwide Facebook is the biggest social media platform according to number of users (Statista). However, in the Netherlands Facebook is not the social media platform that is mostly used, WhatsApp is the most used platform(2016).

tabel 2

Worldwide users of social media platforms in active users in millions

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Most used social media platforms in the the Netherlands with number of users in millions

In February 2015 Facebook bought WhatsApp for 19 billion dollar to enlarge its position in the industry. At the moment that WhatsApp was acquired, it created more involvement than facebook, was growing with 1 million users per day and it has a young target group. However, the major reason of the acquisition was the information about their users, although WhatsApp only has phone numbers and names of her users. Nevertheless, according to professor José van Dijck it is so-called ‘golden data’. When you install WhatsApp, it downloads your list of contacts, and till the acquisition of WhatsApp, Facebook did not had this data. By connecting the data of both companies, Facebook will become better in selling advertisements.

However, Facebook has to take certain regulations into account. During the acquisition by Facebook, WhatsApp promised that it would not share any information. However last month WhatsApp annouced that it was starting to share some of its users’ information with its parent company, Facebook. Many users expressed anger that their digital privacy could be at risk.

A German regulator now thinks that this digital privacy is at risk. According this regulator WhatsApp is not only misleading its users, but also violating the German privacy laws. Facebook is ordered to stop collecting and storing data of WhatsApp users in Germany. It should be the decision of the German WhatsApp users if they want to connect their account with Facebook. According to Facebook, it complies with Europe’s privacy rules and they are willing to work with the regulator to address its concerns.

In a world where the influence of social networks is growing it is an interesting case to follow. Because in a world where we want to connect with people, we still attach a high value to our privacy and also our digital privacy. This particular case only will affect German WhatsApp users, however it could have a big influence on social media networks in general.

https://www.statista.com/statistics/272014/global-social-networks-ranked-by-number-of-users/ https://www.statista.com/statistics/278414/number-of-worldwide-social-network-users/ http://www.newcom.nl/socialmedia2016 http://www.marketingfacts.nl/berichten/social-media-in-nederland-2016-whatsapp-overstijgt-facebook http://www.bndestem.nl/algemeen/economie/facebook-koopt-niet-zomaar-een-app-1.4228989 http://www.nytimes.com/2016/09/28/technology/whatsapp-facebook-germany.html?ref=technology

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Google Trips: a disrupting competitor in the holiday planning industry?

24

September

2016

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Let’s be honest, who do not like going on a holiday? Backpacking in Central-America, Asia or Australia, but also a city trip in Europe, it sounds attracting to me. Going on a holiday should be fun and not causes stress. However when I am on a holiday I have my flight and hotel information somewhere across emails and printed papers. Besides that last summer I used 8 different applications, like TripAdvisor, Hostelworld and Googlemaps in planning my trip and 2 different lonely planet’s. Still the lonely planet’s and all this apps do not satisfy all my needs, something that I experienced was the lack of apps that can be used offline, as I am too greedy to pay extra for Internet when I am abroad. So the use of multiple apps, and the lack of apps that can be used offline causes stress and in my opinion, that should not happen during a holiday.
Apparently I am not the only one that faces this problem and therefore Google tries to tackle this by launching their new app; Google Trips. The app is only launched on the 19th of September and is the new kid in the market of travel apps. But can Google Trips differentiate itself from their competitors? They try to get most solutions in one app and make it possible that travellers do not have to go through the hassle of toggling between different apps, printouts or travel guides with all the travel information or different notes with saved recommendations from friends. The strongest point of this app is that you have all your travel info in one place – with access to it even without having access to the Internet.
The app pulls all the travel data from your Gmail including flight and hotel reservations and the necessary contact information. So if you buy a flight ticket, or make a reservation for a hotel a new trip will be created in the app. For 200 cities across the world, recommended day trips are created, but also customized trips can be made. All highlights of a city are showed on a map and you can pin this places, then a route will be created and also visiting times, open or close status and charges will be showed. Not only the top spots can be found in the app, but also restaurants and bars including ratings and reviews. Places that you are interested in can be saved. Also general information about a city and how to get around can be found in the app.
According PhoCusWright the global travel is a $1.3-trillion industry (2014). The industry is rapidly growing as well moving online, and therefore it is understandable that Google try to enter this market. It is not the first attempt of Google to enter the travel market, but I am not sure if this attempt will be the game changer. I see the need for one place where you can find all travel information and therefore can reduce the number of apps that are needed during a holiday. As Google has a lot of information available, you expect them to serve in this need. However, the possibility to plan day trips is only available for 200 cities, and only a few number of restaurants and bars are reviewed in the app. Also the app falls short in one of the crucial steps between planning and the actual trips – bookings. Customers cannot make bookings within the app and therefore still should use other apps.
So, there is a need for one place where all information that is relevant for your holiday can be found. Thereby it is an advantage when you can use the app offline, but the added value of this will decrease as roaming charges in Europe will be abolished by June 2017. In my opinion Google Trips does not satisfy the need of bring all relevant information for planning a holiday in one place. However the app has some advantages, and therefore next holiday I will probably use 2 lonely planet’s and 9 apps instead of 8.
References:
http://marketrealist.com/2016/09/google-trips-could-it-be-googles-breakthrough-in-the-online-travel-space/
http://newsmonkey.be/article/71457
https://get.google.com/trips/
http://www.theverge.com/2016/9/19/12943054/google-trips-travel-app-android-ios
http://www.phocuswright.com/Free-Travel-Research/Travel-Innovation-and-Technology-Trends-2015
https://www.theguardian.com/business/2016/sep/21/european-commision-mobile-phone-roaming-charges-telecoms

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