Vendors and unions object to Spirit bankruptcy data sale to Google

In short: Google’s planned purchase of Spirit Airlines data in bankruptcy is facing objections from vendors and worker groups who say the sale could include data Spirit does not own.

What happened

Spirit Airlines, in bankruptcy proceedings, has an agreement to sell part of an “enterprise dataset” to Google. Google said the data could help improve its products and AI models, and it said it will not receive customers’ personal information from the dataset.

A startup called Springshot says it got no notice before the auction and believes the dataset may include Springshot’s intellectual property, meaning technology and know-how the company built and owns. Springshot told the court that the sale description is too vague, with broad categories like “workflow and process data,” and does not clearly separate Spirit’s data from vendor-owned material.

Other objections have also been filed. International Aero Engines, a Spirit vendor, said the dataset may include its confidential business and technical information. Unions and groups representing former Spirit employees have raised privacy concerns, including the sale of large volumes of employee communications, such as emails and workplace messages. Privacy advocates told Ars Technica this type of sale is unusual, especially because it involves employee data.

A court hearing on the objections is scheduled for Sept. 16. A separate company, Micro1, has offered a higher competing bid, but critics say its proposal still does not clearly require separating vendor-owned data.

Why it matters

This case could set expectations for what happens to digital records when a company goes bankrupt. If business partners and employees fear their emails, documents, or trade secrets can be sold like office furniture (as if a shared filing cabinet is treated as one person’s property), they may become more cautious about what they share and how they work.

Source: Arstechnica