We flagged this as a critical issue in our contribution to the UNCTAD Information Economy Report, written before Snowden. Now the rubber is hitting the road and billions of revenue are at stake. The Snowden leaks and the view that American tech companies were too cooperative with the United States government have hurt the prospects for American tech companies abroad. Earlier estimates of potential lost sales over the next few years have ranged as high as $180 billion, or 25 percent of industry revenue, according to Forrester Research. To address those concerns, the companies are building more data centers abroad.
This should be of relevance to the ongoing debate on the net benefits of mobile networks for liberty. But as a German Green party politician, Malte Spitz, recently learned, we are already continually being tracked whether we volunteer to be or not. Cellphone companies do not typically divulge how much information they collect, so Mr. Spitz went to court to find out exactly what his cellphone company, Deutsche Telekom, knew about his whereabouts. The results were astounding.