Talk Data to Me: Why Data Brokers and Data Monopolies Are the Real Privacy Problem

The real data privacy problem isn’t creepy ads. It’s concentrated power: data brokers, data monopolies, and who controls the pipes.

Full NY Times Article here

Image by: @VictorBlue

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Sophia and I have a recurring argument about data privacy.

Sophia’s stance: the ship has sailed. Companies have the data. She’s not offended anymore.

My stance: I am deeply offended. Not in a pearl-clutching way. In a “why am I on twelve newsletters I did not sign up for and being targeted by ads for a German stroller company I accidentally clicked on once” because it was in the way of my Justin Baldonia v. Blake Lively scroll path.

But then a New York Times story about the government pressuring data companies to turn over their data pulled us out of the weeds and into the thing we actually agree on:

The biggest privacy problem isn’t that data exists. It’s that data power is concentrated.

In other words: monopolies over data are the real issue.

Because when a few companies control the “pipes” your data flows through, you don’t just lose privacy. You lose leverage.

What the New York Times story surfaced

The reporting highlights how government agencies can pressure data companies to share user information. Whether you’re bothered or unbothered by tracking, it raises the same question: when a few companies hold massive pools of data, how easy is it for that data to be accessed, reused, or repurposed?

What are “the pipes”?

Think of your digital life like water running through plumbing.

Your:

• searches

• location signals

• purchases

• calendar events

• messages

• browsing history

• “likes” and follows

• device identifiers

• app activity

• ad clicks (even the accidental ones)

All of that travels through systems owned by… not that many companies.

The “pipes” are the major platforms and intermediaries that:

• collect data (apps, websites, devices)

• move it around (ad tech, trackers, analytics)

• link it together (identity graphs, data brokers)

• monetize it (ads, targeting, insights, resale)

• control access (APIs, app stores, operating systems)

When we say “only a few pipes,” we mean we’ve built an economy where a small group of players controls most of the routes data travels.

Why “only a few pipes” is dangerous

If there are only a few pipes, the owners of those pipes become gatekeepers. And gatekeepers get options the rest of us don’t.

One knock becomes a master key

When your digital life is centralized, “access” doesn’t mean one harmless data point.

It can mean:

• a full behavioral trail

• patterns over time

• who you know

• where you go

• what you buy

• what you’re anxious about at 2:00am

Centralization turns small requests into big exposure.

They can raise tolls anytime

If everyone has to use the same pipes, the pipe owners can:

• change terms

• increase prices

• expand tracking

• reduce transparency

• decide what competitors can access

And what are you going to do? Move your entire digital life? Most people can’t.

That’s the point.

Opting out becomes intentionally painful

A market with real choice rewards companies that treat users well.

A market with locked-in pipes rewards companies that make leaving hard.

That’s why “privacy controls” can feel like a scavenger hunt:

• buried settings

• confusing toggles

• “are you sure?” popups

• vague language

• partial deletions

• endless forms

Not always because they’re evil. Often because… it works.

Innovation gets squeezed

When incumbents hold the data, new products start with a disadvantage.

Even if a startup builds something better, it can’t compete if:

• it can’t import your history

• it can’t integrate cleanly

• it can’t access necessary interoperability

• users can’t switch without massive effort

So the data monopoly becomes a moat.

And then we wonder why everything feels like the same three products in a trench coat.

The fix isn’t “go off-grid”

You don’t need to quit the internet and raise goats. Okay fine, that’s not a bad idea…

But the goal isn’t perfect privacy. The goal is power balance.

That means designing for a world where:

• data can move

• switching is normal

• competition is real

• no single company becomes the default custodian of everyone’s life

Which brings us to two terms that sound boring but are actually the whole ballgame.

Portability and interoperability (moving your data without begging)

Data portability: take your data with you

You should be able to export your own information in a usable format.

Not:

• a PDF

• a messy zip file

• an export missing key fields

• something designed to be technically “available” but practically useless

But:

• structured data (CSV/JSON)

• complete enough to rebuild your history

• accessible without emailing support like it’s 2006

Interoperability: it works elsewhere

Portability alone doesn’t help if every company uses a different format.

Interoperability means:

• shared standards

• clean APIs

• permission-based connections

• systems that can actually talk to each other

Plain English: if you switch tools, you shouldn’t have to retype your whole life.

Competition: more roads, fewer toll booths

This is what I meant by “competition that breaks the only a few pipes problem.”

If there are only a few highways, whoever owns them can:

• charge what they want

• decide who gets access

• track everyone

• make it hard for new routes to exist

Breaking the pipes problem means:

• more infrastructure choice (so one company isn’t the default)

• rules that prevent gatekeeping (no punishing competitors)

• lower switching costs (so leaving is realistic)

• less dependence on surveillance ads as the default model

• standards that let products plug in without permission slips

Because when real competition exists, companies have to earn trust. Not assume it.

What Sophia and I actually agree on

Sophia’s right: the ship has sailed on “no one has my data.”

I’m right: it still sucks to be trapped in the marketing-industrial complex.

But the bigger point is this:

Privacy isn’t just about whether someone has your data. It’s about whether you have choices when they do.

And the moment data becomes concentrated in a few hands, privacy stops being an individual preference and becomes a structural risk.

What to do now (not someday)

Do the easy wins

• Unsubscribe aggressively and mark spam (it trains inbox filters).

• Turn off ad personalization where you can (Google/Meta/Amazon settings).

• Use a tracker blocker on your browser (even basic ones help).

Reduce data broker exposure

• Search your name + phone number + city and see what pops up.

• Use opt-out tools where available (annoying by design).

• Set a recurring calendar reminder to re-check quarterly (data gets republished).

The bigger ask

• Support portability and interoperability standards.

• Push for competition rules that prevent data gatekeeping.

• Reward products that minimize collection and can prove it.

FAQ

What is a data broker?

A data broker is a company that collects personal information from many sources and sells or shares it, often for advertising, profiling, or analytics.

Why are data monopolies a privacy problem?

Because concentration turns small access into big exposure. When a few companies control the “pipes,” users have less choice, less leverage, and fewer real ways to opt out.

What is data portability?

Data portability means you can export your data in a usable format so you can move it to another service.

What is interoperability?

Interoperability means services can securely exchange data using shared standards, so switching tools doesn’t require rebuilding your life from scratch.