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German watchdog warns Google over its data processing terms

January 13, 2023


Abstract : Germany's Cartel Office issued an objection against Google, warning that Alphabet - the tech giant's parent company since 2015 - must give its users more choice in the processing of their data.

CAPTION: German watchdog warns Google over its data processing terms. (picture alliance / Hans Lucas)

The authority based in Bonn sent the US holding a "detailed warning" as the options offered so far are "too intransparent and sweeping," it said in a press release.

The competition watchdog is specifically concerned about the way in which the company can collect data for various purposes and process it across services such as Google Search, YouTube, Google Play, Google Maps and Google Assistant.

Google can also collect data from numerous third-party websites and apps. This also concerns data from so-called background services of Google, such as the Play Services, some of which regularly collect data from Android devices.

Under the current conditions, users had insufficient choice as to whether and to what extent they agreed to this far-reaching processing, the objection said. However, it gives the company the opportunity to comment on the accusations and to present further justifications or proposals for solutions.

The warning letter was sent to three addressees: In addition to the parent company Alphabet in Mountain View in California, Google Ireland Ltd in Dublin and Google Germany GmbH in Hamburg also received a letter from Bonn.

Meanwhile, it remains disputed among experts whether the Cartel Office is competent to deal with these questions at all. The authority itself admits that for certain Google services, the European Digital Markets Act (DMA) would be applicable in the future, the enforcement of which falls under the exclusive competence of the European Commission. The Cartel Office stated that it was in dialogue with the commission on the matter.

It is also unclear whether, from a legal point of view, the administrative act is a warning at all. Experts note that Google must first be heard before a formal warning can be issued.

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