Explainer
What happens to your data when a startup dies
Thousands of apps shut down every year. Their user data does not always shut down with them.
Technology columnist
5 min read
When a company is liquidated, its databases can be sold like any other asset.
When a startup fails, its assets are sold to pay creditors. Office chairs, laptops, domain names, and sometimes databases full of customer information.
Here is what the law says, and what you can do before it happens.
Is it legal?
In the EU, buyers must respect the original privacy terms and have a legal basis for using the data. In practice, enforcement after a bankruptcy is rare.
What you can do
Delete accounts you no longer use.
Request deletion when a service announces it is closing.
Prefer services that publish what happens to data on shutdown.
A better standard
Some privacy advocates propose a “data will”: a public commitment, made at launch, about what happens to user data if the company fails.
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Ines Okafor
Technology columnist
Ines writes about technology and power, and who gets to decide what the machines are for.
