Silicon Valley suits up for Capitol Hill, lobbies for federal privacy law

Dive Brief:

Big tech, including Google, Microsoft, Facebook and IBM, are lobbying the Trump administration for a federal privacy law, reports The New York Times. The companies are looking for a federal law that would overrule California's privacy bill and weaken its language.
However, the U.S. Chamber of Commerce, Internet Association and Information Technology Industry Council are teaming up to "push for voluntary standards instead of legal mandates" with penalties for violations. These trade groups say volunteering to uphold proposed privacy guidelines should be used as a replacement to California's law.
A "self-regulator blueprint" isn't as much of a worry to companies like IBM and Salesforce because their revenue is primarily from storage and software sales. Facebook and other social media or search sites, reliant on selling personal data for ads, are more likely to fight legalized privacy rules, according to the report.

Dive Insight:

Striking a balance between public and private sector views on privacy could help welcome the U.S. into a new era of data privacy. A compromise between the sectors could raise the standard for accountability with clearer rules and possible penalties.

If trade groups succeed in the creation of a type of privacy honor system, it could undermine the privacy protection debate and work against California's progress. Democratic California State Senator Robert Hertzberg who was instrumental in crafting the state's legislation, said "we can't wait for the federal government to act — Washington is deadlocked," in an email to CIO Dive.

California often sets the example for tech-related regulations. In 2003, the Golden State enacted the Online Privacy Protection Act and its latest privacy bill is hailed as the state's natural evolution.

Yet big tech has shown resistance to the public sector stepping in. The ballot initiative prior to the bill collectively brought on $1 million worth of opposition from Facebook, Google, Comcast, AT&T and Verizon. Facebook later walked back its opposition.

"There are renewed efforts to define the privacy legislative frameworks of the future, and we look forward to working with policymakers around the world to move the process forward," according to a Google spokesperson in an emailed statement to CIO Dive, in response to The New York Time's report.