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PRIVACY

Austria privacy activists file suit against streaming sites

An Austrian privacy campaign group lodged complaints against eight online streaming services Friday, accusing them of "structural violations" of EU data regulations that came into effect last year.

Austria privacy activists file suit against streaming sites
Privacy campaigner Max Schrems. Photo: AFP

NOYB, a non-profit organisation whose name means None Of Your Business, said it had filed a complaint with Austria's Data Protection Authority against services including Netflix, YouTube, Amazon Prime and Spotify.

NOYB says the services have violated the EU's General Data Protection Regulation (GDPR) by not granting users access to data that companies hold on them or information about how the data is used.

Privacy campaigner Max Schrems, one of the founders of NOYB, said the issue of access to such data was one of the most common reasons people got in touch with the NGO.

On Netflix, for example, “you can figure out a lot about someone's personal behaviour and even political leanings from the data they have — what you're watching, the times of day you're watching, who you're watching it with,” 
Schrems told AFP.

NOYB tested the provisions of the GDPR by asking eight major streaming services for access to data. 

It said two failed to respond and the rest did not provide the data in an intelligible format nor gave additional background information that users are also entitled to.

“The 'front ends' of these websites look nice, welcoming and compliant but really the data is stored in the 'back ends' — we want to bring more transparency to these data 'black boxes',” Schrems said.

In theory, the EU's data regulations provide for heavy financial penalties for companies who break them. 

Schrems has previously brought cases against Facebook and other tech firms in several European countries.

In 2015 he brought down the EU's former “Safe Harbour” data sharing arrangement after he sued Facebook in Ireland over the transfer of personal information by Facebook from Europe to the United States.

BUSINESS

Spotify reports strong growth in users as it announces price rise

Spotify on Tuesday reported a bigger-than-expected rise in active users at the end of the second quarter, a day after the music streaming giant announced price increases for its premium service.

Spotify reports strong growth in users as it announces price rise

The Swedish company, which is listed on the New York stock exchange, said it’s total active users rose 27 percent to 551 million year-on-year, or 21 million more than it expected. The number of paying subscribers also rose, with a 17 percent jump to 220 million — three million more than expected.

On Monday, the company announced it was raising its prices for premium subscribers “across a number of markets around the world,” following in the footsteps of similar moves by competing music services from Apple and Amazon.

Despite the boost in users, Spotify reported a bigger operating loss of 247 million euros ($273 million) in the second quarter, compared to a loss of 194 million euros for the same period a year earlier.

The company said it was “primarily impacted by charges related to our actions to streamline operations and reduce costs.”

In early June, Spotify announced it would be cutting some 200 positions working with podcasts.

That move came after a January announcement that Spotify was cutting around 600 jobs — equalling about six percent of its workforce — following similar moves by other tech industry giants.

Spotify has invested heavily since its launch to fuel growth with expansions into new markets and, in later years, exclusive content such as
podcasts. It has invested over a billion dollars into podcasts alone.

In 2017, the company had around 3,000 staff members, more than tripling the figure to around 9,800 at the end on 2022.

The company has never posted a full-year net profit and only occasionally quarterly profits despite its success in the online music market.

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