Thank you.
Mr. Chairman, and committee members, I have closely followed your committee because I believe Canadians are facing the most important public policy issue of our time: data governance.
Canada's innovators know that data flows have transformed commerce and made data the most valuable asset in today's data-driven economy. Businesses use data to create as well as access new markets and to interact globally with both customers and suppliers. Control over data and networks allows dominant firms to hinder competition and extract monopoly rents from their customers and to deceive consumers via their data collection strategies. Vast troves of data are collected and controlled by foreign unregulated digital infrastructures. This is why the Council of Canadian Innovators called on our governments to design a national data strategy to ensure that cross-border data and information flows serve the interests of Canada's economy.
A national data strategy should codify explicit treatment of competition in the data sections of free trade agreements, including the right to competitive access to data flowing through large data platforms that have de facto utility status. If Canada doesn't create adequate data residency, localization, and routing laws that protect Canadians, then our data is subject to foreign laws, making Canada a client state.
While the Facebook scandals instigated the recent set of testimonies before this committee, I urge you to arm yourself with the facts about the data-driven economy, which is completely different from the knowledge-based economy that proceeded it and the production-based economy of the 20th century.
Intangible commodified data does not function the same way as tangible goods. The data-driven economy gets its value from harvesting, identification, commodification, and then use of data flows.
What we have heard from companies such as Facebook, including at this committee, is an inaccurate picture of what is happening. The Cambridge Analytica and Facebook scandal is not a privacy breach, nor is it a corporate governance issue. It's not even a trust issue. It's a business model issue based on exploiting current gaps in Canada data governance laws.
Facebook and Google are companies built exclusively on the principle of mass surveillance. Their revenues come from collecting and selling all sorts of personal data, in some instances without a moral conscience. For example, in Australia, Facebook was caught selling access to suicidal and vulnerable children.
Surveillance capitalism is the most powerful market force today, which is why the six most valuable companies are all data driven. Their unique dynamics require a made-for-Canada strategic and sovereign policy approach, because data and intellectual property are now key determinants of prosperity, well-being, security, and values.
Data underpins all aspects of our lives, as you can see from the illustration I gave you as a framework. As an intangible asset, data has critical non-commercial effects. With this in mind, I make the following recommendation: implement GDPR-like provisions for Canada. GDPR offers valuable lessons and a point of departure for Canada's legislators and regulators. It is a universally acknowledged advance in privacy protection and control of data.
European policy-makers recognize that whoever controls the data controls who and what interacts with that data, today and into the future. This is why they ensured that EU citizens own and control their data. Similarly, Canadians should own and control their data. Canadians need to be formally empowered in this new type of economy, because it affects our entire lives. For our democracy, security, and economy, Canadian citizens, not unaccountable multinational tech giants, need to control the data that we and our institutions generate.
By focusing only on individual privacy, Canadians can find themselves plugging just one of many holes, which is, in effect, plugging nothing. We need a horizontal lens to legislation and policies. Privacy and digital public and private services aren't opposing forces. For example, Estonia shows that better data governance leads to increased privacy in digital services.
Economists consistently show that the data-driven economy is unfolding at a speed that outpaces the creation of evidence-based policy-making. I urge you to work with Canadian innovators and experts who understand open technologies, data sciences, competition, standard-setting, strategic regulations, trade agreements, algorithm ethics, IP, and data governance.
We need them to help craft detailed policies that are technical in nature. By working with experts, we can advance our country and ensure Canada doesn't miss participating in the data-driven economy, like it missed prospering in the knowledge-based economy over the past 20 years.
On a personal level, as a Canadian, I am deeply worried about the effect mass surveillance-driven companies have on both Canadian society and individual Canadians. Personal information has already been used as a potent tool to manipulate individuals, social relationships, and autonomy. Any data collected can be reprocessed, used, and analyzed in the future, in ways that are unanticipated at the time of collection. This has major implications for our freedom and democracy.
I am concerned that without the design and implementation of a national data strategy, our politicians are moving ahead with initiatives with foreign companies that are in the business of mass surveillance. Some of these companies have a proven track record of using data for manipulative purposes. Unfortunately, history offers sobering lessons about societies that practise mass surveillance.
It is the role of liberal democratic government to enhance liberty by protecting the private sphere. The private sphere is what makes us free people. There is no individual consent to, or opting out of, a city or a society that practises mass surveillance, and this is the path Canada is currently on. Therefore, in addition to putting in place appropriate economic incentive structures and regulatory frameworks, I also urge you and fellow elected officials to act boldly to preserve our liberal democratic values, to promote the public interest, and to assert our national sovereignty.
I thank you for considering my recommendations and for the opportunity to present here today.