Italy’s Antitrust Agency to Investigate Google for Improper Personal User Data Handling
- Italy's antitrust body is launching an investigation into Google for using aggressive commercial practices that violate consumer rights.
- The company has acknowledged the issue and a spokesperson confirmed that they will be analysing the details of the case and cooperating with the authorities.
- In case it is found guilty, a fine anywhere between 5,000 euros to 10 million euros can be imposed.
On Thursday, Italy's antitrust body revealed that it would be launching an investigation into Google and its parent company Alphabet for allegedly using unfair commercial practices involving users' personal data.
According to the agency, the request for consent that Google sends to its users could constitute misleading and aggressive commercial practice".In simple terms, the company's request for consent does not offer enough clarification to the user about how it affects their personal data. This means that when a user gives their consent, they do so without fully knowing what they are signing up for.
Also, a single consent form is used for multiple Google services such as YouTube, Gmail, and Maps. This limits the user's freedom of choice. Just because they are consenting to offer their personal data to one service doesn't mean they should be forced to do the same for every service by Google.
What Happens Now?The authorities have merely raised their concerns right now, the charges are yet to be proved. A spokesperson for the company addressed this issue and said that they would analyze all the details associated with the case and cooperate with the authorities.
In case Google's practices are actually found to be violating consumer rights, it will be facing a hefty fine ranging from 5,000 euros to 10 million euros. And given Google's market share and annual turnover, the fine will probably be on the higher end.
Meta also came under stern scrutiny for collecting user data for AI training purposes. Although it provided an online form for users to opt out, the measures taken were deemed insufficient. For now, the project has been put on hold in the EU. Brazil went a step ahead and banned Meta's personal data use for AI training.
In Other NewsApart from this investigation, the other big news about Google at the moment is its acquisition of cybersecurity startup Wiz for $23 billion. If this deal goes through, it will be the company's most expensive acquisition ever (after the acquisition of Motorola in 2012).
However, this road is not free of hurdles and this deal too is expected to come under investigation.
Since the US antitrust authorities right now have all their attention turned towards big companies (to ensure they don't gain too much power), this deal will also be scrutinized. And given Google's latest history of acquiring AI and cybersecurity firms, it might be seen as a move to stifle competition in the industry.
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