Even before Google launched its new privacy policy in the early March 2012, consolidating separate privacy policies for more than 60 applications, legal issues had surfaced.
Now, attorneys general from more than 31 States have accused Google of violating privacy laws because of complaints from users that they were finding ads are popping up on YouTube just after they did a search on Google Maps about the same subject. EU regulators told Google prior to the launch that the new privacy policy compromises the privacy of EU citizens and violates EU laws.
The Importance
The overwhelming majority of people in the U.S. and EU use Google every day, so the scope of Google's potential privacy issues is huge. The Pew Research Center reported in August 2011 that 92 percent of all adults in the U.S. use a search engine and email every day. Couple that statistic with comScorce's estimate that Google controls 66.2 percent of the U.S. search engine market and 80 percent of the EU search engine market, and it's clear Google accumulates great volumes of personal search data.
Since Google saves users' searches for 18 months in the U.S. and 12 months in the EU, many government officials are leery of the way Google exploits users' privacy and uses that information to generate more ad revenue. And that's just the search engine side.
There are many other Google applications affected by the new policy, including YouTube, Maps, Mobile, Latitude, Google Voice, Google Docs and many others Google's new privacy policy is relevant to every user, because it allows Google to aggregate information across applications.
With this, Google will be able to use information it learns through your emails on Gmail when you do a search on Google's search engine. So if you are logged in to Gmail and also entering data on Google's word processing app, you may get advice about the correct spelling of one of your contacts from Gmail or Google+.
Personal Information Usage
Google's new privacy policy applies to all Google services except for Chrome browser, Books and Wallet (mobile payment processor) , each of which will still be governed by a separate privacy policy. Under the new consolidated privacy policy, Google tracks all activity on Google services of users who are logged in, which provides the data it can share, as mentioned above.
Google includes in its privacy policy a description of Key Terms that includes details about what Google may use to track users, including cookies and IP address. Among other things it can use:
- Anonymous identifier - A random string of characters that used for the same purposes as a cookie on platforms, including certain mobile devices, where cookie technology is not available.
- Server logs - Google's servers automatically record the page requests made when you visit its sites. These server logs typically include Web request, Internet Protocol address, browser type, browser language, the date and time of your request, and one or more cookies that may uniquely identify your browser.
Google suggests its new privacy policy helps users by simplifying the user experience, although the embedded links lead to more contractual terms and definitions included in the privacy policy. As a result, could be misleading.
Google's Story
In January, Google announced consolidation of its privacy policies in its official blog:
So we're rolling out a new main privacy policy that covers the majority of our products and explains what information we collect, and how we use it, in a much more readable way. While we've had to keep a handful of separate privacy notices for legal and other reasons, we're consolidating more than 60 into our main Privacy Policy.
Google went on to say that the new privacy policy will allow a better user experience.
The Electronic Privacy Information Center (EPIC) filed a Motion to enjoin Google from implementing new ToS [Terms of Service] and Privacy Policies early this month. In February, EPIC filed a Motion for Temporary relief against the Federal Trade Commission (FTC) to enforce Google's March 2011 Agreement Containing Consent Order, which included the FTC's oversight on Google's privacy policies for 20 years. EPIC's Motion came on the heels of the EU's request that Google slow down the implementation of the new ToS and privacy policies.
EPIC's Motion claims that Google's new ToS and privacy policies violate the FTC Consent Order and includes the following claims: Users will no longer be able to keep personal information they provide to use the Google email service for simply that service; Google will be able to combine the user information provided for email with other Google services, including the Google social network service.
However, a federal court in Washington, D.C., ruled that it did not have the authority to force the FTC to enjoin Google from implementing its new privacy policy and ToS. EU Claims that Google's New Privacy Policies Violate EU Laws.
Although Google claims its new privacy policy helps simplify its privacy rules, the EU claims otherwise, maintaining specifically that the new privacy policy "makes it impossible to understand which purposes, personal data, recipients or access rights are relevant to the use of a specific service."
The EU gave the lead role to investigate Google's new privacy policy to the French Commission nationale de l'informatique et des libertes (CNIL). CNIL states that it "is responsible for ensuring that information technology remains at the service of citizens, and does not jeopardize human identity or breach human rights, privacy or individual or public liberties."
The CNIL highlighted the significance of Google's penetration in the EU with the following statistics about Google's usage. Google accounts for:
- More than 80 percent of the European search engine market.
- Around 30 percent of the European smartphone market.
- 40 percent of the global online video market.
- More than 40 percent of the global online advertisement market.
Google disagrees with EPIC and the EU, but has offered to respond to inquiries from regulators.
Conclusion
Given the market power that generated more than US$38 billion in revenue and $9.7 billion of net income from advertising in 2011, these new privacy policies are surely created to help increase revenue. And there will likely be many challenges in the weeks to come from around the world, and perhaps in courts in the U.S. and EU.