Google has agreed to modify its data terms following concerns raised by Germany's Federal Cartel Office (FCO) in January. This decision will grant users more control over how Google uses their information, as per the FCO's announcement.
The alterations encompass instances where Google intends to combine personal data from one Google service with data from other Google or non-Google sources or use this information across separate Google services.
LONDON, ENGLAND - AUGUST 09: In this photo illustration, The Google logo is projected onto a man on August 09, 2017 in London, England. Founded in 1995 by Sergey Brin and Larry Page, Google now makes hundreds of products used by billions of people across the globe, from YouTube and Android to Smartbox and Google Search.
Commitments of Google After Concerns Raised by Germany
Andreas Mundt, President of the Bundeskartellamt (Germany's independent competition authority), emphasized the pivotal role of data in the business models of major digital enterprises.
He underscored that the dominance of these companies in the market is intricately tied to the acquisition, processing, and synthesis of data. Mundt pointed out that Google's competitors do not possess the same breadth of data, placing them at a significant competitive disadvantage.
"In the future, users of Google services will have a much better choice as to what happens to their data, how Google can use them, and whether their data may be used across services. This not only protects the users' right to determine the use of their data, but also curbs Google's data-driven market power," Mundt said in a press statement.
He added, "We have made sure that Google will provide a separate choice option in the future." The commitments undertaken by Google resulted from proceedings initiated by the Bundeskartellamt based on the new instrument under competition law that allows the agency to intervene when competition is at risk by large digital companies in accordance with Section 19a of the German Competition Act.
Introduced in 2021, this provision facilitates action against anti-competitive practices. The commitments encompass situations where Google aims to combine personal data from various sources, whether within or outside the Google ecosystem. It includes more than 25 services, such as Gmail, Google News, Assistant, Contacts, and Google TV.
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Precedent for Other Tech Giants?
Moving forward, Google will be required to provide users with clear options to give specific, informed, and unambiguous consent for cross-service data processing.
The selection dialogues must be transparent and avoid manipulative tactics. However, data processing terms explicitly stating that no cross-service data processing will occur will be exempt from this requirement, according to the FCO.
This development showcases the collaborative efforts between the Bundeskartellamt and the European Commission. The Digital Markets Act and Section 19a GWB are seen as complementary tools in addressing competition concerns posed by large digital companies. It emphasizes the importance of enforcing competition rules in tandem with platform regulation.
The Bundeskartellamt also exchanged information with German data protection authorities during the process. This decision sets a precedent for potential action against other tech giants, including Amazon, Apple, Meta, and Microsoft, which are also under investigation by the Bundeskartellamt.
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