The Privacy Problem with Big Tech Companies

Key Takeaways:

• Big Tech collects and monetizes user data through tracking and profiling, often prioritizing profit over transparency and consumer privacy. This leaves users uncertain about where and how their data is used.
• Privacy scandals and data breaches continue to expose how companies like Google, Meta, and Amazon handle user information, leading to growing concerns over surveillance, data retention, and third-party sharing.
• New privacy laws and decentralized technologies are challenging Big Tech’s data-driven model, pushing for stronger regulations and giving users more control over their personal data.

 

Big Tech companies have made life easier in ways we barely think about anymore. A quick Google search answers any question, social media keeps us connected, and smart assistants are always ready to help. But there’s a catch—every tap, click, and conversation feeds into a system designed to track, analyze, and profit from user data.

Most people don’t realize how much of their personal information is being collected. Location tracking, browsing habits, and even voice commands are all fair game. While companies promise transparency and control, privacy policies are often vague, filled with loopholes that keep users in the dark.

Recent lawsuits and privacy scandals have pushed data collection into the spotlight, sparking conversations about consumer rights. But is it enough? This article breaks down how Big Tech collects and uses your data, the biggest privacy violations that have surfaced, and what you can do to protect yourself. Because when it comes to personal privacy, the real question isn’t just what Big Tech knows—it’s how much we’re willing to give away.

The Convenience vs. The Privacy Trade-Off

Google, Facebook (Meta), Apple, and Amazon are woven into modern life. Their platforms offer seamless, AI-driven experiences, making daily tasks easier—often for free. But there’s a reason these services don’t come with a price tag: if you’re not paying for the product, you are the product. Instead of money, users pay with their personal data.

Every day, Google processes over 8.5 billion searches, Apple’s iCloud syncs millions of devices, and Amazon’s AI-powered recommendations drive nearly 35% of its sales. These companies aren’t just collecting data; they’re analyzing and monetizing it, building detailed profiles that shape what users see, buy, and interact with. The more personalized the experience, the more users stay engaged—blurring the line between customization and surveillance.

Even as privacy concerns grow, most people continue using Big Tech services out of convenience. Social media, search engines, cloud storage, and AI assistants have become essential, making it difficult to opt out entirely. The reality is, digital convenience comes at a cost—a cost paid in personal data. The question is, are we willing to accept it?

How Big Tech Collects and Uses Your Data

Privacy concerns and data breaches have made users more aware of how Big Tech tracks, collects, and monetizes personal data. Understanding how this data is gathered and used is the first step in protecting privacy. Below are the key ways Big Tech companies collect, analyze, and profit from user data.

1. Tracking and Profiling Users

Big Tech companies track users across multiple platforms, apps, and devices, building detailed behavioral profiles. Every search, click, and interaction feeds into advanced algorithms that analyze:

• Browsing habits
• Purchase history
• Location patterns
• User interactions with devices
• Connections with friends and family (via contacts, messages, and social media activity)

Google, Meta (Facebook), Apple, and Amazon don’t just collect data within their own platforms—they extend their reach across the internet. Google gathers insights from Search, YouTube, Maps, and Chrome, while Meta pulls data from Facebook, Instagram, WhatsApp, and third-party sites using Facebook Pixel tracking. This means that even if you’re not actively using these platforms, they continue collecting data about you.

To achieve this, companies use tracking methods such as:

• Third-party cookies – Monitor user activity across websites
• Browser fingerprinting – Identify users based on unique browser settings
• Tracking pixels – Embed invisible trackers in web pages and emails
• IP address tracking & behavioral analytics – Monitor mouse movements, scrolling, and interaction patterns

Over time, Big Tech companies aggregate this data into predictive user profiles, allowing them to anticipate preferences, interests, and even emotions with remarkable accuracy. They use these insights to serve personalized ads, manipulate online experiences, and optimize engagement—all to keep users spending more time on their platforms.

2. Mass Data Collection and Storage

Big Tech doesn’t just collect data—it stores it indefinitely. Cloud services like Google Drive, iCloud, and OneDrive hold vast amounts of personal documents, emails, and media files. Smart assistants like Alexa and Siri record and process voice commands, often retaining data longer than users realize.

Biometric data has become another area of concern. Many platforms now rely on fingerprints, facial recognition, and voice authentication for security, but these identifiers come with unique risks. Unlike passwords, biometric data is permanent—once compromised, it cannot be changed. While companies claim to protect biometric information, many store it in centralized databases, making it vulnerable to breaches, unauthorized access, and misuse.

Some privacy-first alternatives, like on-device authentication (used by Apple’s Face ID and Android’s Secure Enclave), limit exposure by ensuring biometric data never leaves the user’s device. However, not all platforms follow this model. Many still collect and store biometric data externally, creating potential privacy risks.

For example, Amazon allows users to delete Alexa voice recordings, yet reports indicate that copies may still exist on its servers for extended periods. The more data companies collect, the bigger the security risk. In recent years, data breaches have exposed billions of records, proving that even the largest tech firms struggle to safeguard user information.

3. Data Sharing and Selling

While Big Tech insists they don’t “sell” user data outright, they routinely share it with advertisers, business partners, and, in some cases, government agencies. Google’s ad network tracks users across millions of websites, refining targeted marketing strategies, while Meta allows advertisers to leverage personal data for precision targeting.

The Cambridge Analytica scandal revealed how third parties improperly accessed personal data for political manipulation, while Edward Snowden’s disclosures on PRISM surveillance exposed how intelligence agencies gained backdoor access to user data, often without consent.

Beyond advertising, data-sharing agreements raise concerns about where business interests end and government surveillance begins. As more governments push for access to encrypted communications, privacy advocates warn that Big Tech’s willingness to comply could set dangerous precedents for mass data collection.

4. Monetizing from User Data

At its core, Big Tech’s business model is built on monetizing user data. The digital advertising industry is projected to surpass $1 trillion by 2025, with Google and Meta leading the market. These companies leverage vast amounts of behavioral data to optimize ad targeting and maximize user engagement.

Google Ads and Facebook Ads track user activity in real-time to ensure businesses reach the right audience at the perfect moment. Whether through search history, social media interactions, or shopping cart abandonments, every action feeds into an advertising system designed for maximum profitability.

Beyond advertising, Big Tech monetizes data through subscription-based services marketed as privacy-enhanced options. YouTube Premium, X Premium Plus, and Apple’s iCloud+ charge users for reduced tracking and fewer ads—essentially making them pay for an experience that wouldn’t require invasive data collection in the first place.

Additionally, companies like Amazon and Microsoft profit from enterprise solutions that use consumer insights to develop AI-powered business tools. Whether through advertising, partnerships, or premium services, Big Tech has mastered the art of turning personal data into revenue.

Notable Privacy Scandals and Violations by Big Tech

Big Tech companies frequently claim to prioritize privacy, yet data breaches and surveillance scandals continue to make headlines. While companies promote privacy as a selling point, reports suggest that many use it as a marketing strategy rather than a true commitment to data protection. Some, like Google, have been found to lobby against stronger privacy regulations while publicly advocating for user rights. Below are some of the most notable privacy violations that highlight the disconnect between corporate promises and reality.

1. Google Chrome’s “Fake” Incognito Mode – A $5 Billion Privacy Scandal

In 2020, Google faced a lawsuit for misleading users into believing Incognito Mode was private when, in reality, it continued to track and collect user data. The lawsuit sought $5 billion in damages, accusing Google of unauthorized surveillance. In April 2024, Google settled by agreeing to delete billions of records but did not admit wrongdoing or pay financial penalties—leaving many questioning whether tech giants can truly be held accountable.

2. Apple’s $95 Million Siri Lawsuit Settlement

Apple agreed to a $95 million settlement in December 2024 to resolve a class-action lawsuit alleging that Siri was frequently activated without user consent, recording private conversations and exposing them to third parties, including advertisers. While Apple denied any wrongdoing, the lawsuit raised serious concerns about privacy violations, forcing the company to rebuild Siri’s voice processing with stronger on-device protections.

3. Meta’s Data Scraping for AI Training

In September 2024, Meta (formerly Facebook) admitted to scraping public Facebook and Instagram posts dating back to 2007 to train its AI models. If users didn’t adjust their privacy settings, platforms likely used their content—including images and personal posts—without consent. European users could opt out under strict GDPR protections, but those in other regions, like Australia, had no such choice, raising privacy concerns.

4. AT&T’s Massive Data Breach Exposes 51 Million Users

On March 17, 2024, AT&T suffered a major data breach, leaking 51 million customer records, including Social Security Numbers, account details, and passwords. The breach underscored vulnerabilities in corporate data security, as highly sensitive user information was exposed to potential identity theft.

5. Google’s Ad-Tech Data Misuse – Targeting Users Based on Sensitive Information

A 2024 WIRED investigation found that Google’s Display & Video 360 (DV360) platform allowed advertisers to target users based on sensitive personal data—including health conditions, military roles, and government positions. Despite Google’s public claims that it does not sell user data, advertisers using its high-end ad network reportedly found loopholes to bypass restrictions, raising major concerns about how tech giants enforce their own privacy policies.

Unlike the free Google Ads platform, DV360 is reserved for premium clients spending over $50,000 monthly, meaning major corporations like Disney, NBCUniversal, and InfoTrust were among those involved. This scandal highlights how Big Tech monetizes data in ways that often go unnoticed by everyday users.

The Loopholes in Tech Companies’ Privacy Policies

Tech companies often frame their privacy policies as strong safeguards for user data, but beneath the surface, loopholes allow for excessive data collection, vague transparency, and misleading consent practices. These gaps leave users vulnerable, enabling companies to profit from personal information while offering little real control over data privacy. When it comes to privacy, what seems black and white is often a murky shade of gray.

1. Confusing Terms of Service and Opt-in Traps

When was the last time you carefully read a privacy policy or Terms of Service before clicking “Accept”? If you’re like most users, the answer is never—and that’s intentional.

Tech companies use complex legal jargon and excessively long documents to discourage users from fully understanding what they’re agreeing to. Even when users attempt to opt out of data collection, companies employ dark patterns—design tricks that subtly push users toward sharing more data than they realize.

Some common opt-in traps include:

• Pre-checked boxes that automatically enroll users in data-sharing unless manually disabled.
• Misleading consent forms that imply tracking is required for functionality.
• Hard-to-find privacy settings that make opting out tedious and confusing.

By strategically designing these systems, companies ensure that most users unknowingly agree to extensive data collection before they ever use a service.

2. Lack of Real Data Control for Users

Despite claims of “enhanced privacy” and “user control”, many Big Tech platforms offer only superficial ways for users to manage their data.

A major issue is data tracking transparency—users can see which companies are collecting their data but often cannot stop it effectively. For instance:

• Meta’s “Off-Facebook Activity” tool claims to show users which companies are tracking them, yet provides no way to prevent ongoing data collection beyond vague opt-out options.
• Many platforms make data deletion difficult, requiring users to navigate complex, multi-step processes that often don’t fully erase their data from company servers.
• Revoking consent is inconsistent—while companies claim users can withdraw permission, in practice, previously shared data remains accessible to advertisers and third parties.

This lack of meaningful control makes it clear that privacy settings are more about optics than real protection.

3. Data Retention and Deletion Policies

Even when users delete their accounts, their data often remains stored for months—or indefinitely.

Tech companies rarely disclose exactly how long they keep user data, and most privacy policies lack clear guidelines on retention limits. For example:

• Facebook retains user data for up to 180 days, even after an account is deleted.
• Amazon Alexa recordings have been stored long after users delete them, as revealed in past investigations.
• Google stores search and location history for years unless users manually adjust retention settings—an option that isn’t always easy to find.

These retention policies increase the risk of data breaches and allow companies to continue analyzing user behavior, even when individuals believe they’ve wiped their information.

4. Selective Privacy Practices & Legal Loopholes

While tech companies claim to prioritize privacy, they selectively enforce protections based on regional laws, legal pressures, or business interests.

For instance, Apple’s Advanced Data Protection (ADP)—a feature that offers end-to-end encryption for iCloud backups—was removed for UK users in early 2024 due to government pressure. Apple warned that this decision weakens privacy, stating:

“We are gravely disappointed that the protections provided by ADP will not be available to our customers in the UK given the continuing rise of data breaches and other threats to customer privacy.”

This decision highlights a broader issue: Big Tech companies claim to defend user privacy, yet comply when governments demand access to data.

Similarly, platforms like TikTok offer stricter privacy measures in the EU under GDPR regulations while providing weaker protections for U.S. users, where no federal privacy law exists. This discrepancy shows how privacy is only prioritized where legally required—not as a fundamental right for all users.

Big Tech vs. Global Privacy Regulations 

Companies like Meta, Google, Apple, and Amazon operate across multiple regions, often facing regulatory conflicts due to varying privacy laws. However, repeated data breaches, lawsuits, and hefty fines highlight the urgent need for stricter enforcement to curb reckless data handling.

Compliance with GDPR vs. Loopholes in Enforcement

The EU’s General Data Protection Regulation (GDPR) is one of the world’s strongest privacy laws, requiring companies to obtain user consent, provide data access and deletion options, and impose heavy fines for violations. However, enforcement remains a challenge due to:

• Forum Shopping: Many Big Tech firms establish their European headquarters in Ireland, where the Irish Data Protection Commission (DPC) has been criticized for slow enforcement. With its low corporate tax rates and skilled workforce, Dublin has become a tech hub for companies like Google, Meta, LinkedIn, Dropbox, and Slack, making it the “San Francisco of Europe.”
• Dark Patterns: Many companies still use deceptive UI design to manipulate users into giving consent, making privacy-friendly choices difficult.
• Litigation and Appeals:  Fines imposed by EU regulators are often delayed by legal appeals, allowing companies to continue their questionable data practices in the meantime.

The U.S. Patchwork of Privacy Laws and Self-Regulation

Unlike the EU, the U.S. lacks a comprehensive federal privacy law. Instead, privacy regulation is fragmented, relying on industry self-regulation and state-level laws:

• California’s CPRA: The California Privacy Rights Act (CPRA) offers some of the strongest privacy protections in the U.S., but it only applies to California residents.
• FTC Oversight: The Federal Trade Commission (FTC) can penalize deceptive data practices but lacks the legislative authority to enforce systemic privacy regulations.

Beyond the EU and U.S., Big Tech also faces growing privacy laws worldwide, including:

• China’s Personal Information Protection Law (PIPL)
• India’s Digital Personal Data Protection (DPDP) Act

To navigate global privacy laws, Big Tech companies adjust compliance regionally, offering stronger protections in stricter regions (e.g., the EU) while maintaining looser policies elsewhere—a strategy known as regulatory arbitrage. At the same time, they invest heavily in lobbying efforts, particularly in the U.S. and India, to influence privacy laws in their favor.

How Users Can Protect Their Privacy from Big Tech

Trusting these companies to safeguard personal information has become increasingly difficult. Instead of waiting for stricter regulations or ethical commitments from tech giants, users must take control of their own privacy. Here are some effective steps to minimize data exposure:

1. User Privacy-Focused Search Engines

Mainstream search engines like Google and Bing track user activity to serve targeted ads. Switching to a privacy-first alternative can prevent unnecessary data collection:

• DuckDuckGo: Does not store search history or track users across the web, providing an ad-free and private search experience.
• Startpage: Acts as a proxy for Google results, allowing users to access accurate search results without tracking.

Many mainstream search engines, like Google and Bing, track users extensively to serve targeted ads. Users concerned about search privacy can switch from Google to a privacy-focused search engine.

2. Choose Privacy-Centric Browsers

Browsers like Chrome and Edge are optimized for performance but are not built with privacy as a priority. Consider these alternatives:

• Firefox: An open-source browser developed by the non-profit Mozilla Foundation, offering built-in privacy protections.
• Brave: Blocks ads, trackers, and third-party cookies by default and features Brave Search as a private alternative to Google.
• Tor: Routes internet traffic through multiple encrypted layers, ensuring maximum anonymity.

3. Block Trackers and Third-Party Cookies

Tech companies rely on web trackers and third-party cookies to monitor browsing habits, purchases, and interactions. Here’s how to limit their reach:

• uBlock Origin & Privacy Badger (Extensions): Blocks tracking scripts and intrusive ads that follow users across websites.
• Safari & Firefox (Built-in Protections): Both browsers automatically block third-party cookies and fingerprinting techniques.

4. Disable Ad and Activity Tracking:

Many platforms collect user activity for ad targeting and behavioral profiling. Users can take control by adjusting their settings:

• Google Activity Controls: Visit Google’s My Activity to pause location tracking, YouTube history, and web/app activity logs.
• Facebook Off-Facebook Activity Tool: This feature reveals which businesses share user data with Facebook and allows users to disconnect tracking.

5. Minimize Your Digital Footprint

The more personal information available online, the more vulnerable users become to data breaches, identity theft, and aggressive tracking. Here’s how to limit exposure:

• Limit Social Media Sharing: Avoid posting real-time locations, job details, and personal routines. Set profiles to private and review past posts.
• Use Alias Emails: Services like SimpleLogin and ProtonMail create disposable emails, preventing companies from linking accounts.
• Opt-Out of Data Brokers: Platforms like DeleteMe and OptOutPrescreen help users remove their personal data from public databases.
• Review App Permissions: Regularly check which apps access the microphone, camera, contacts, and location—and revoke unnecessary permissions.

The Future of Privacy and Big Tech

As scrutiny over data security and privacy concerns grows, shifting consumer expectations, emerging privacy-first technologies, and evolving regulations are reshaping the future of Big Tech.

1. Growing Consumer Awareness and Demand for Privacy

Users are becoming more aware of how companies harvest and monetize their personal data. As once-hidden collection practices come to light, many are demanding greater transparency, stronger protections, and real control over their information.

One key response to this shift is data minimization—the practice of limiting data collection to only what is necessary. Instead of stockpiling vast amounts of user information, companies are being pressured to adopt privacy-focused models that reduce data retention and exposure risks. This shift not only aligns with regulatory requirements but also helps rebuild trust in digital services.

2. Rise of Decentralized and Privacy-First Technologies

New privacy-first technologies are shifting control of data back to users. Blockchain-based identity systems, decentralized social platforms like Mastodon, and privacy-preserving methods such as zero-knowledge proofs are changing how data is stored and shared.

These technologies eliminate the need for centralized data storage, reducing the risks of mass breaches and surveillance. By enabling secure, peer-to-peer interactions, they challenge traditional Big Tech models and offer users more control over their information.

3. Upcoming Regulations That Could Reshape Big Tech’s Business Model

New and upcoming regulations could significantly impact how Big Tech companies operate. The EU’s Digital Markets Act (DMA) and Digital Services Act (DSA) are already introducing stricter transparency and accountability measures. In the U.S., the American Data Privacy and Protection Act (ADPPA) seeks to establish federal privacy standards, reinforcing user rights.

These policies aim to limit invasive data practices by enforcing stricter controls on data collection, sharing, and user consent. If properly enforced, they could shift priorities within the tech industry, requiring companies to prioritize consumer privacy and security over data-driven profits.

Conclusion

The future of privacy in Big Tech is at a turning point. As regulatory pressure mounts, privacy-first technologies gain traction, and users become more conscious of how their data is handled, the traditional power dynamics are shifting. Companies that fail to adapt risk losing user trust, while those that embrace transparency and data protection could set new industry standards. Whether through stronger laws, decentralized solutions, or individual action, one thing is certain—digital privacy will continue to evolve, shaping the next wave of innovation and defining the internet for future generations.

Identity.com

Identity.com helps many businesses by providing their customers with a hassle-free identity verification process through our products. Our organization envisions a user-centric internet where individuals maintain control over their data. This commitment drives Identity.com to actively contribute to this future through innovative identity management systems and protocols.

As members of the World Wide Web Consortium (W3C), we uphold the standards for the World Wide Web and work towards a more secure and user-friendly online experience. Identity.com is an open-source ecosystem providing access to on-chain and secure identity verification. Our solutions improve the user experience and reduce onboarding friction through reusable and interoperable Gateway Passes. Please get in touch for more information about how we can help you with identity verification and general KYC processes using decentralized solutions.