Google agrees to overhaul user data practices to resolve German antitrust probe
File photo of the Google logo.
Alphabet subsidiary Google has reached an agreement to revamp its user data practices, marking the end of a German antitrust investigation aimed at curbing the tech giant's data-driven market dominance, the German cartel office announced on Thursday.
The German antitrust watchdog had issued a statement of objections to Google in January, expressing concerns over the company's data processing terms. It argued that users were not provided with sufficient options regarding the extensive processing of their data across Google's various services.
Tech giants like Google rely heavily on selling targeted advertising, a lucrative business model driven by the vast amounts of user data they accumulate. This model has come under regulatory scrutiny worldwide.
The German regulator noted that Google's commitments would empower users with more control over how their data is utilised across the company's platforms.
Reuters cited Andreas Mundt, President of the cartel office, who emphasised the significance of this development, stating, "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."
Google's commitment extends to over 25 other services, including Gmail, Google News, Assistant, Contacts, and Google TV. However, it does not encompass Google Shopping, Google Play, Google Maps, Google Search, YouTube, Google Android, Google Chrome, and Google's online advertising services. These services fall under the jurisdiction of a new EU legislation known as the Digital Markets Act, which imposes similar obligations.
The German competition authority has intensified its scrutiny of major tech companies since it gained expanded powers, known as Section 19a GWB, in 2021. These powers empower the authority to investigate and prohibit certain practices by companies deemed to possess paramount significance and cross-market influence.
This newfound authority has led to investigations into other tech giants, including Amazon, Meta Platforms, and Apple.
(With inputs from Reuters)
WATCH WION LIVE HERE