SYDNEY (Reuters) – Australia’s competition regulator accused Google of Alphabet on Monday (GOOGL.O) to trick consumers into obtaining permission to use their personal data for targeted advertising, seeking a fine “in the millions” and with the aim of setting a precedent.
FILE PHOTO: A 3D printed Google logo is seen in this illustration taken on April 12, 2020. REUTERS / Dado Ruvic / File Photo
The move comes as scrutiny grows around the world over data privacy, and US and European lawmakers recently focused on how tech companies treat user data.
In court documents, the Australian Competition and Consumer Commission (ACCC) accused Google of not explicitly obtaining consent or adequately informing consumers of a 2016 measure to combine personal information in Google accounts with site navigation activities non-Google website.
“This change … was worth a lot of money for Google,” said committee chairman Rod Sims. “We allege that they have achieved this through deceptive behavior.”
The change allowed Google to link the browsing behavior of millions of consumers with their names and identities, giving it extreme market power, the regulator added.
“We believe that Google misled Australian consumers about what it planned to do with large amounts of their personal information, including Internet activity on websites not connected to Google,” said Sims.
However, Google said the change was optional and that consumer consent was sought through prominent, easy-to-understand notifications.
“If a user did not consent, their experience with our products and services remained unchanged,” a Google spokesperson said in an email, adding that the company intends to defend its position.
In June 2016, Google had changed the wording of its privacy policy, dropping a statement that it would not combine data known as “cookies” from its ad display business, DoubleClick, with users’ personal information.
Instead, the new policy said: “Depending on your account settings, your activity on other sites and applications may be associated with your personal information to improve Google services.”
The Australian regulator alleges that Google used the combined data to drive targeted advertising, a key source of revenue, and that it did not make clear to consumers the changes to its privacy policy.
“This is an action we are taking that others have not taken,” said Sims.
The regulator, through its action in the Australian Federal Court, wanted to establish common law on what providers could do in various jurisdictions, and was potentially seeking “millions” in damages, he added, without specifying a figure.
“We will continue to take action, as will agencies abroad, and determine the behavior of these platforms, to ensure that the Internet is a benefit to users, not a detriment.”
Reports by Paulina Duran in Sydney and Nikhil Kurian Nainan in Bangalore; Edited by Clarence Fernandez
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