Alphabet’s subsidiary, Google, has taken significant steps to address concerns related to its data practices, ultimately bringing an end to a German antitrust investigation. The announcement was made by the German cartel office on Thursday, marking a significant development in the ongoing global scrutiny of tech giants’ data-driven market power.
The German antitrust watchdog initiated the investigation in January, issuing a statement of objections to Google regarding its data processing terms. The primary concern was that users were not afforded adequate choices regarding the extent to which their data would be processed across Google’s wide array of services. Tech giants, including Google, rely on selling targeted advertising based on the vast amounts of user data they collect, a business model that has come under increasing regulatory scrutiny worldwide.
According to the German regulator, Google has committed to making changes that will provide users with more control over how their data is utilized across the company’s platforms. This development is seen as a significant win for user privacy and an attempt to curb Google’s data-driven dominance in the market.
Andreas Mundt, President of the cartel office, stated, “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 more than 25 other services, including popular offerings like Gmail, Google News, Assistant, Contacts, and Google TV. However, it’s important to note that this agreement does not apply to services such as Google Shopping, Google Play, Google Maps, Google Search, YouTube, Google Android, Google Chrome, and Google’s online advertising services. These services are subject to new EU legislation known as the Digital Markets Act, which imposes similar obligations on tech companies.
The German competition authority has intensified its scrutiny of major tech companies since acquiring expanded powers, known as Section 19a GWB, in 2021. These powers enable the authority to investigate and potentially ban certain practices by companies considered to have paramount significance and cross-market power. This has resulted in investigations into other tech giants, including Amazon, Meta Platforms (formerly Facebook), and Apple.
As regulatory bodies continue to examine the practices of tech companies, these developments signify an ongoing effort to strike a balance between protecting user data privacy and ensuring fair competition in the digital landscape. Google’s commitment to changes in its data practices is expected to have a ripple effect on the broader discussion surrounding data-driven market power and user privacy protection.