Algorithms, data, and accountability at scale
The technology sector is at the epicenter of global debates over privacy, algorithmic transparency, antitrust, and the ethical use of artificial intelligence. As digital platforms expand their influence, regulators and courts are intensifying scrutiny of how tech companies manage non-financial risks — from data breaches to discrimination to content governance.
Key Risks
Data Privacy Violations and Record GDPR Fines
IIn May 2023, Meta (Facebook) was fined €1.2 billion by Ireland’s Data Protection Commission for illegal transfers of European user data to the United States — the largest GDPR penalty to date.
The case highlighted deficiencies in cross-border data protection under Schrems II and the invalidation of Privacy Shield.
Cybersecurity Breaches and Concealment
IIn 2016, Uber suffered a major data breach exposing records of 57 million users and drivers. Instead of notifying authorities, Uber paid hackers $100,000 to delete the data. In 2022, Uber’s Chief Security Officer was convicted of obstruction of justice — the first executive held personally liable for concealing a cyberattack.
AI Copyright Infringement and Dataset Scrutiny
In 2023, Getty Images sued Stability AI, alleging that its model, Stable Diffusion, was trained on millions of copyrighted images without authorization.
This case could set precedent for the legal boundaries of training generative AI on protected content.
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Antitrust and Platform Abuse
Tech giants such as Google and Apple face lawsuits and regulatory actions in both the U.S. and EU over abuses of market dominance, restrictions on app developers, and self-preferencing in search and advertising algorithms.
Sector Trends
AI Regulation and Risk Categorization
The EU AI Act designates high-risk AI systems (e.g., facial recognition, credit scoring, HR automation) as subject to transparency, audit, and human oversight requirements.
The Decline of Third-Party Cookies
With growing resistance to invasive tracking, browser vendors and privacy regulations are forcing the industry to rethink advertising models. “Dark patterns” used to manipulate consent are increasingly targeted by enforcement actions.
Algorithmic Accountability and Discrimination Risk
Studies like MIT’s “Gender Shades” have shown that commercial facial recognition systems perform poorly on women and people of color. Tech companies are being held responsible for algorithmic bias in hiring, lending, and policing tools.
What This Means for Your Business:
Your business is no longer judged solely on innovation, but also on how your systems impact society, democracy, and individual rights.
Executives may face personal liability for failures in cyber, ethics, or compliance governance.
Regulatory obligations are expanding fast — and they follow the function of the technology, not just the jurisdiction of the headquarters.
Sources
Irish Data Protection Commission, Meta GDPR Decision, May 2023
U.S. v. Joseph Sullivan (Uber CSO), Northern District of California, 2022
Getty Images v. Stability AI, UK High Court, 2023
European Commission, Artificial Intelligence Act, Regulation adopted 2024
U.S. FTC v. Google, Antitrust Proceedings, 2023
MIT Media Lab, “Gender Shades: Bias in Facial Analysis,” 2018
CNIL (France), “Consent and Cookies Sanctions,” Annual Report 2023