How does network effect overshadow Data Privacy?

Evgeny Pozdeev
UDAPTOR
Published in
2 min readJun 19, 2020

Today we want to talk a little bit about the network effect. Everyone is under the influence of it, but not everyone knows what it is: network effect is when the value of a product/service for the user increases according to the number of users.
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Nowadays the network effect can be so strong that avoiding or leaving certain services might cause from some discomfort to actual costs and losses for a user. In this case, the network effect becomes more powerful and important than other aspects of the product, including Data Privacy.
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A quick example! the most popular messenger in the world — WhatsApp — has gone through very serious events related to Data Privacy: WhatsApp was blamed on exposing app vulnerabilities and on storing unencrypted backups; one co-founder even left the firm saying “I sold my users’ privacy”; Jeff Bezos phone was hacked using WhatsApp, and so on and so forth. All these incidents are not hidden from the public, people know about them, but people still use the app. Why? “Because everyone uses it” — the most common answer, and it really shows the force of the network effect: nowadays it’s so inconvenient to avoid using WhatsApp that people are ready to put their privacy under risk.
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While the network effect plays such a big role in our lives, overshadowing essential aspects like Data Privacy, there is still a way to deal with this. First of all, it’s awareness — knowing that the problem exists is an essential step towards solving the problem! And of course, there is the second aspect — GDPR that allows us to leverage data interoperability. Increasing users’ mobility between services is one of the ways to tackle the dramatic power of the network effect — that’s why UDAPTOR is here for you!
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If there are services that you’d like to get rid of, but you can’t due to the Network Effect — shoot us in the comments! We are up for any discussion over the current situation:)

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