Facebook-owned WhatsApp’s new privacy policy has caused a public backlash and exodus from the messaging platform that boasts around two billion users globally.
The company announced on 4 January that WhatsApp users would have to share data with Facebook and had until 8 February to accept the new terms to continue using the app. The updates include changes to how the platform processes user data, how businesses use Facebook-hosted services for the storage and management of their WhatsApp chats, as well as enhanced data sharing and integration with Facebook for improved customer service offerings.
Facebook has since delayed the changes until May, but millions of users have already switched to rival services.
WhatsApp is merely performing an ‘act of goodwill’ as required by data privacy laws, by notifying its users of the policy changes and giving them the opportunity to consent or opt out.
Sizwe Gwala
Sizwe Gwala, enterprise data governance manager at Alexander Forbes, says mathematician Clive Humby was ‘on the money’ when he said the world’s most valuable resource is no longer oil, but data. Countries that generate, process and export oil have built and sustained immeasurable wealth, thereby dominating the global economy over years. Similarly, modern-day businesses that have grown tremendously are largely data-driven, with data being their fundamental asset when crafting business strategies, in decision-making, and, ultimately, in the generation of revenue.
“However, successfully deriving value from data is dependent on businesses possessing high-quality data, fit for business purpose, readily available and integrated to all related products and services,” says Gwala
Although most users are appalled by WhatsApp’s recent stance, the move comes as no surprise to the data community, he says. “Data gathered to date ought to be integrated to all their product offerings for them to achieve their core business objective, which is the selling of highly personalised advertising to thier clients.”
Standard practice
Data-sharing is a standard business practice and by now, most users understand that their data is being shared with a variety of service providers without their consent or knowledge.
WhatsApp, says Gwala, is merely performing an ‘act of goodwill’ as required by data privacy laws, by notifying its users of the policy changes and giving them the opportunity to consent or opt out.
The fact that WhatsApp and its parent company Facebook are free services, with users benefitting from all their service offerings without any fees imposed on them, is what Gwala says is ‘the elephant in the room’.
Simply signing-up for these apps means users have voluntarily consented to their data being gathered and stored by them. “This data is used to improve product and service offerings, thereby enhancing the customer experience. It’s a fact that business doesn’t exist for philanthropic purposes, so the 2014 move that saw Mark Zuckerberg acquiring WhatsApp was driven by a desire to dominate the mobile connectivity space, to penetrate the young audience market and dominate the mobile advertising space.”
Understand the changes
Since the announcement, many users have been panicking and some have sought alternatives, with Signal and Telegram emerging as the favourites.
However, anyone affected should take the time to understand what these changes really mean before making any decision. User information to be shared with Facebook includes transaction data, service-related information, and user interaction information.
Regardless of whether users decide to remain loyal or jump ship, they should be aware that mobile app businesses are data-driven, and, as such, their data remains the asset that keeps the business afloat.
“Mobile app businesses are still obliged to act honestly and ethically in their handling of customer data and, consequently, adhere to parameters set out in data privacy regulations,” concludes Gwala.
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