Privacy That Is Too Expensive: How the Good Intentions of Officials Are Destroying the Internet

Do you know the difference between good intentions and actual results? Naturally, it’s the number of ruined lives. When the EU and USA launched GDPR and CCPA to protect personal data, it all sounded beautiful: “We will protect your data from malicious corporations!” Russia, with its Federal Law No. 152, also jumped on board with the idea that they would protect citizens from digital bandits and Western agents. The concept looked decent, but what happened in the end?

Paradox one: your data is still floating around the web like a cat on the rooftops in spring. Leaks? Every year they break records! Just imagine: under GDPR in Europe, more than 160 thousand leaks occurred in the first year and a half. In Russia, the situation is practically farcical: the data of nearly all adult citizens has already been leaked online. What kind of protection are we talking about in this case?

Paradox two: the laws are supposedly against market giants, but they are the ones who came out on top. Google and Facebook’s share of the advertising market only grew after the introduction of GDPR. Why? They simply have enough money for an army of lawyers and technicians that others cannot afford. Moreover, compliance with GDPR or CCPA became a nightmare for small businesses and startups; many simply couldn’t handle it and shut down.

Paradox three: instead of growth in trust, we received only irritation from endless cookie banners and permission requests for every single breath. People don’t read—they just click “I Agree.” It’s like those bank terms and conditions that nobody reads, only to be surprised later: “How did I end up owing 5 thousand rubles a month for account maintenance?”

Another unpleasant point is data localization. In Russia, the law requires storing citizens’ data on local servers, allegedly to protect information from Western intelligence agencies. The result? Instead of Google or LinkedIn, Russians got local analogues with questionable security and low service quality. It’s like being forced to buy bread from only one store, with the justification that it’s “safer.” But when there is no choice, quality usually drops and prices rise.

There are also amusing examples: many American websites simply blocked access from the EU after GDPR, deciding that European users were “too expensive” to maintain. Imagine you want to visit your favorite resource, and it tells you: “Sorry, you are too expensive a customer, goodbye!” Absurd? Yes, but such is the new reality of data protection.

So what should we do? A libertarian approach, instead of suffocating state regulation, offers common sense and market mechanisms. First and foremost, these are voluntary standards instead of bureaucracy. Let businesses develop effective data protection rules themselves. And if consumers don’t like something—they will go to competitors who respect privacy. After all, if a company screws up, the market will punish it, customers will leave, and profits will fall. This works more effectively than any Roskomnadzor inspection or fines.

But what will help best is the use of technological solutions instead of paperwork. For example, end-to-end encryption, where access to your messages and files is available only to the sender and the recipient. Even if the data falls into the wrong hands, the hacker will simply see a meaningless set of characters. Another important approach is data minimization. Why collect every single piece of data if only the bare minimum is needed?! For most web services, a login and password are enough. The less data, the fewer risks. And also—decentralized storage. Instead of one large database that lures hackers, information can be distributed across many independent points, making the attackers’ lives many times harder. In short, technology allows for the protection of privacy far more effectively than government laws and endless inspections.

As we can see, a good intention does not equal a good law. Officials wanted the best, but they got what they usually get. Let’s trust people and business instead of bureaucrats and the instructions they impose!

Voluntarist, Bitarch

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