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How the GDPR's Data Portability Rules Could Affect Client Churn
Capital Markets, FinTech
Last month, the U.S. Justice Department was found to be investigating AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ) for allegedly colluding to lock customers into their networks and prevent server switches.
This month, new policies in the European Union will make data transfers even simpler than they were before, meaning the churn companies feared under old rules could now accelerate.
The right to data portability, as it’s referenced in the General Data Protection Regulation, empowers customers of music streamers, banks, retailers and any other companies to transmit any volunteered or collected data “in a structured, commonly used and machine-readable format” to other controllers — even competitors.
For consumers, this means the time spent building a profile at one company won’t be wasted, and switching services won’t require data re-entry or repeated preference curation.
Who Data Portability Affects
The new law, which takes effect May 25, streamlines the transfer of playlists between Spotify Technology SA (NYSE: SPOT) and Pandora Media Inc (NYSE: P); shopper profiles …
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