Google faces EU crackdown over privacy violations

January 2012's privacy policy comes under fire.

The EU is considering a "co-ordinated crackdown" on Google after it ignored requests from regulators to delay the imposition of its new privacy policy until they had cleared it for compliance with data protection law.

The policy was announced last January (though it only came into effect in March), and allowed Google to mix personal data from all its subsidiaries, particularly Youtube, which had hitherto been cordoned off. The new internal user profiles this enabled the company to create are of great value to advertisers, but the company also trumpeted the improved experience it could offer users, saying at the time:

Our privacy policies have always allowed us to combine information from different products with your account — effectively using your data to provide you with a better service. However, we’ve been restricted in our ability to combine your YouTube and search histories with other information in your account. Our new privacy policy gets rid of those inconsistencies so we can make more of your information available to you when using Google.

The EU didn't agree, and asked the company to hold off implementation until it had held an investigation on whether it complied with EU data protection law. The probe, which began in mid-March, finally reported back in October, and found that the new policy did indeed breach EU law. The French data protection commission, the CNIL, which led the investigation, had recommended a number of changes, such as easier opt-outs for advertising. But the company insists its policy already complies with EU law.

As a result, the CNIL is organising a co-ordinated response to Google, since, as the head of the commission told the Wall Street Journal on Monday, "we're better armed when we speak with one voice than when each country takes its own steps".

The EU hasn't played the situation brilliantly. The fact that its investigation only reported back in October, over six months after it began, is proof of severe regulatory overreach; and it would have been an unnecessary and unsupportable restraint on Google to have asked it to hold off on what was a major business decision for that entire period.

Nonetheless, Google appears to be continuing a trend amongst Silicon Valley — exemplified by Facebook in its squabble with the Irish data protection commission over facial recognition data — of assuming that the regulations of the countries it operates in don't apply to it. The EU has considerably stricter data protection laws than the US, and while some of them, such as the ill-fated cookie directive, are worthy of being ignored, others provide genuine protection for the consumer.

Google maintains that "we have engaged fully with the CNIL throughout this process and will continue to do so," but the EU's privacy group will vote on whether to take action against the company at the end of February.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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What type of Brexit did we vote for? 150,000 Conservative members will decide

As Michael Gove launches his leadership bid, what Leave looks like will be decided by Conservative activists.

Why did 17 million people vote to the leave the European Union, and what did they want? That’s the question that will shape the direction of British politics and economics for the next half-century, perhaps longer.

Vote Leave triumphed in part because they fought a campaign that combined ruthless precision about what the European Union would do – the illusory £350m a week that could be clawed back with a Brexit vote, the imagined 75 million Turks who would rock up to Britain in the days after a Remain vote – with calculated ambiguity about what exit would look like.

Now that ambiguity will be clarified – by just 150,000 people.

 That’s part of why the initial Brexit losses on the stock market have been clawed back – there is still some expectation that we may end up with a more diluted version of a Leave vote than the version offered by Vote Leave. Within the Treasury, the expectation is that the initial “Brexit shock” has been pushed back until the last quarter of the year, when the election of a new Conservative leader will give markets an idea of what to expect.  

Michael Gove, who kicked off his surprise bid today, is running as the “full-fat” version offered by Vote Leave: exit from not just the European Union but from the single market, a cash bounty for Britain’s public services, more investment in science and education. Make Britain great again!

Although my reading of the Conservative parliamentary party is that Gove’s chances of getting to the top two are receding, with Andrea Leadsom the likely beneficiary. She, too, will offer something close to the unadulterated version of exit that Gove is running on. That is the version that is making officials in Whitehall and the Bank of England most nervous, as they expect it means exit on World Trade Organisation terms, followed by lengthy and severe recession.

Elsewhere, both Stephen Crabb and Theresa May, who supported a Remain vote, have kicked off their campaigns with a promise that “Brexit means Brexit” in the words of May, while Crabb has conceded that, in his view, the Leave vote means that Britain will have to take more control of its borders as part of any exit deal. May has made retaining Britain’s single market access a priority, Crabb has not.

On the Labour side, John McDonnell has set out his red lines in a Brexit negotiation, and again remaining in the single market is a red line, alongside access to the European Investment Bank, and the maintenance of “social Europe”. But he, too, has stated that Brexit means the “end of free movement”.

My reading – and indeed the reading within McDonnell’s circle – is that it is the loyalists who are likely to emerge victorious in Labour’s power struggle, although it could yet be under a different leader. (Serious figures in that camp are thinking about whether Clive Lewis might be the solution to the party’s woes.) Even if they don’t, the rebels’ alternate is likely either to be drawn from the party’s Brownite tendency or to have that faction acting as its guarantors, making an end to free movement a near-certainty on the Labour side.

Why does that matter? Well, the emerging consensus on Whitehall is that, provided you were willing to sacrifice the bulk of Britain’s financial services to Frankfurt and Paris, there is a deal to be struck in which Britain remains subject to only three of the four freedoms – free movement of goods, services, capital and people – but retains access to the single market. 

That means that what Brexit actually looks like remains a matter of conjecture, a subject of considerable consternation for British officials. For staff at the Bank of England,  who have to make a judgement call in their August inflation report as to what the impact of an out vote will be. The Office of Budget Responsibility expects that it will be heavily led by the Bank. Britain's short-term economic future will be driven not by elected politicians but by polls of the Conservative membership. A tense few months await. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.