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In our 2018 book, ‘Everything Transaction,’ we discussed this topic in the context of ‘restoring the data-benefit balance’. While Meta’s recent move improves this balance somewhat by offering a monetary transaction choice, it doesn’t completely restore it. At best, it can be seen as a start. This is because users are presented with very limited choices: pay up, allow data usage, or quit. 

Option 1 puts a price on privacy and an enhanced user experience, and shows that everything can be bought with money. However, users must trust Meta not to misuse their data, and verifying this trust remains a challenge. 

Option 2 makes it explicit that users themselves are the commodities in this transaction. This newfound awareness turns users into actors in the exchange, which holds significant value for Meta. However, users with fewer concerns about data surveillance or with limited financial means may be tempted to choose Option 2 and continue to offer themselves as products.

Very few users are likely to choose Option 3, given the convenience of Meta’s services – despite the potential benefits for collective mental well-being of discontinuing the use of such services.

Data sovereignty is still a long way off

To further restore the data-benefit balance, Meta could provide an option for users to transfer their data to other social media services, in a similar way that people can switch between telecom providers. This would give users true data sovereignty and enable them to choose services based on price and features rather than the size of the network.

In this scenario, users could leave Meta and open an account with an alternative service while retaining access to their accumulated data. That alternative service might offer a ‘free’ option while providing users with a ‘data dividend’ for digital achievements, akin to the creator economy’s revenue-sharing model.

The importance of regulation

The PSD2 regulation gave people data sovereignty over their banking data. The upcoming FIDA regulation will extend this to other financial data. And regulation is still needed to drive further change in people’s data rights. In 2019, EU Commissioner Margrethe Vestager noted that we have the rights to our data, but not the means to exercise our rights. It is time for the political establishment to take action.

Download the book ‘Everything Transaction’ at https://www.innopay.com/en/download-our-book