California's New Privacy Rules Spark Debate Among Tech Giants

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Apr 28, 2025
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The California Privacy Protection Agency is currently debating new rules that could significantly impact how companies track and use sensitive data. These proposed regulations have drawn international attention due to their potential effects on industries ranging from healthcare and banking to online marketing and artificial intelligence.

Tech giants such as Apple, Google, and Meta, along with businesses from the UK and Japan, have voiced their opinions and criticisms regarding these rules. California Governor Gavin Newsom recently warned the agency's board about the risks of over-regulating emerging technologies, suggesting that such regulations could have unintended consequences and threaten California's leadership in tech innovation.

Jason Elliott, a long-time advisor to Newsom, emphasized the governor's pro-business stance, noting that constantly changing regulations could hinder business growth. While the EU and other regions are moving towards deregulation, the California Privacy Protection Agency is taking a different approach.

Over four months, the agency received over 626 public comments on the draft rules from organizations such as Mozilla, Workday, Crowdstrike, and American Express. Concerns have been raised that these rules could burden Silicon Valley with costly and complex regulations at a critical time in global AI competition.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.