My Lords, they say that there is no such thing as a free lunch. When it comes to the social media companies, that is certainly true. Google Search is free, as are Facebook, Twitter, Instagram, WhatsApp, YouTube, TikTok and a host of other online services. All of them are great products, hugely popular and used by billions of people every day throughout the world. So it begs the question: why are they free? It is because the mass of data that the internet companies hoover up on their billions of users is a treasure trove. They collect data such as location, shopping, searches, medical records, employment,
hobbies and opinions. It is said that Google alone has more than 7,000 data points on each one of us. In our innocence, we all thought that we were searching Google; little did we realise that Google was searching us.
What do they do with this hoard of data? They synthesise it through algorithms. They sell their results to advertisers. Traditionally advertisers spend huge amounts on newspapers, television and other media, struggling to target their markets. It was imprecise. Today, using the data provided by the social media companies, advertisers can personalise their message and pinpoint it accurately. It is hugely cost effective and it generates hundreds of billions in revenue. Data truly has become the new oil.
Of the five largest companies in the world by market value, four are big tech: Apple, Microsoft, Alphabet/Google and Amazon. Indeed, Apple alone has a market value equal to the combined value of all the companies on the FTSE 100 Index. Big tech is bigger than most countries. The big tech companies are richer than us, they move faster than we do, they are aggressive, they are litigious, they are accountable to no-one, they have enormous power, and they make their own rules. They employ the smartest people in the world, even including a previous Deputy Prime Minister of our country.
The Zuckerberg shilling can buy a lot of influence. Let us take a look at Facebook. Its platform has allowed the most unspeakable acts of violence, hate and perversion to go viral, pretty much unchecked. It says that it moderates content, but it is not enough, and usually too late. Now we learn that Mr Zuckerberg is spending $10 billion a year on developing his metaverse. Already we have read of examples of virtual reality sex orgies, and participation in gruesome violence, all viewed through a Meta headset, where the avatars are quasi-people and it becomes almost impossible to distinguish reality from fiction. Imagine where that is all going. Frances Haugen, the Facebook whistleblower, had it right when she said that only profit motivates the company.
This is a landmark Bill. We have to get it right, and we have to make it tough, with no room for loopholes or ambiguities. I have tried to paint a picture of the participants. I have worked and been involved in the digital industry for over 50 years. I know the nature of the beast. They will fight to the last to preserve their business model. Do not underestimate them. These people are not our friends.
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