German Regulator Orders Google To Make Privacy Changes

In another blow to Google’s privacy policy in Europe, the German data-protection regulator Johannes Caspar is ordering the company to change and limit how it uses data from its various online properties. Google’s consolidated privacy policy has faced heavy criticism by European privacy officials since its debut two years ago.

There’s a Europe-wide effort going on to limit Google’s ability to use data without offering explicit disclosures and opt-out opportunities for individuals. The proposed changes would alter Google’s ability to collect and draw upon audience data for personalization and ad targeting in Europe and even potentially affect use of Google Analytics.

European regulators have expressed alarm at the breadth and degree of discretion allowed Google under the company’s consolidated privacy policy. Facebook also faces privacy scrutiny (and litigation) in Europe.

According to Bloomberg, the German regulator will now require Google to “modify its privacy policies so users have the ability to determine how their data is used.” Caspar argued that under the current policy, Google could “compile detailed movement patterns, detect the social and financial status, and friendship, sexual orientation and the relationship status” by combining all its data sets about individuals.

With certain prohibited exceptions, that’s precisely the point of “big data” in the U.S. — being able to draw demographic and other inferences about the audience and target them accordingly. However, Caspar’s office said such uses violate European law.

Google has maintained its privacy policy complies with European law and has declined to make changes in response to European regulatory requests. It has already been fined in France and potentially faces similar fines from other EU member states.

In July, Google was presented with a draft set of detailed recommendations for concrete privacy policy changes that European privacy regulators would like to see. However, privacy is just one of several major challenges Google now faces in increasingly contentious regulatory and legal clashes with European officials.