| Hi all, Gerrit here. California often leads the nation on tough corporate legislation. Its size gives it the heft to turn the tide nationally. If you can't sell your car in California because of strict emission rules, what's the point of selling it in the first place?
Now, after months of wrangling with big technology companies, the state will soon play this role again in the digital economy. Two major California laws are set to transform how the industry operates in the state, and across the rest of the U.S.
Assembly Bill 5 passed last month and requires gig economy companies like Uber Technologies Inc. and Lyft Inc. to treat drivers as full employees, likely pushing up costs for these money-losing enterprises. In January, the California Consumer Privacy Act kicks in, forcing data guzzlers including Facebook Inc. and Google to follow much stricter guidelines, such as deleting personal data when people ask.
Both bills have been in the works for a while, and tech companies have worked hard to slow or neuter them. Lyft and Uber sent notifications to their drivers asking them to lobby politicians on the companies' behalf. Negotiations and talk of exemptions proliferated, but they fizzled. Tech giants have pushed hard in Washington for a softer federal privacy bill that would overrule California's. But in a Congress that can barely keep the government funded, those efforts failed, and victory now looks assured for California's data-privacy advocates. The whole situation is shot through with irony because politicians are clamping down on a sector that increasingly powers the state's economy. It seems that simply being lucrative neighbors wasn't enough to secure cooperation from elected officials. So what now? The big tech companies, with near unlimited resources, still have cards to play. Uber simply argues the contractor law doesn't apply to it, and is ready to go to court to fight it out. Uber and Lyft have said they'll put forward a California ballot initiative that could override the law itself. Google and Facebook have been pretty quiet on the legislative front lately, but don't expect that to last. Still, the fact that the wealthiest companies in America couldn't kill these bills before they became the law of the land shows that reining in big tech is possible. And it's not slowing down.--Gerrit De Vynck | 
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