THE FUTURE OF BIG TECH
R&C: Could you provide an overview of the key trends shaping trust and safety in the Big Tech sector? How would you characterise its evolution in recent years?
Kemler: The technology sector has found itself at the forefront of a wave of transformation, spurred by mounting societal pressure and intensified regulatory scrutiny to ensure a safer online experience for all users – particularly minors. Technology companies are investing in measures to improve their trust and safety controls, increase the quality and granularity of transparency reporting, and empower users with agency over how their personal data is used. As technology companies navigate this increasingly complex regulatory environment, they are maturing and optimising their centralised risk and compliance organisations. This trend toward centralisation is a radical change for an industry that values speed, autonomy and experimentation.
R&C: How is this wave of regulations different from past efforts to regulate the technology sector? What type of enforcement should companies expect from regulators?
Simpson: Globally, new regulations are being introduced to hold Big Tech companies and technology companies increasingly accountable. Regulators are increasingly issuing significant penalties for non-compliance with regulations, particularly in Europe, where significant fines have been issued related to the European Union (EU) General Data Protection Regulation (GDPR) and other privacy legislation. Worldwide, technology companies are grappling with sometimes conflicting and inconsistent regulations. Nevertheless, many regulators are expected to enforce new regulations with determination, and any violation will likely result in significant fines and penalties. Regulators are seeking to be transparent about their enforcement efforts, providing updates and reports to the public on the shortcomings of Big Tech’s compliance efforts.
Oct-Dec 2023 Issue
KPMG