Big technology and data privacy

This paper discusses big technology and data privacy. First, we show the rapid rise in technology firms since the millennium. Using Facebook as a case study (the most popular social network in 2022), we show its reliance on personally identifiable data collection and advertising. Second, we investigate the Cambridge Analytica data breach. We show that stock prices fall in response to the data breach using event study methods. Cumulative abnormal returns decline by about 9.8% in the event window. Third, we discuss policy options in response to data privacy concerns. The GDPR provides a legislative model for protecting individually identifiable data.