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France uses new EU data law to fine Google €50 million

France's data watchdog announced Monday a fine of 50 million euros ($57 million) for US web search giant Google, using the EU's strict General Data Protection Regulation for the first time.

France uses new EU data law to fine Google €50 million
Photo: AFP
Google was given the record fine from the CNIL regulator for failing to provide transparent and easily accessible information on its data consent policies, a statement said.
 
Google was handed the record fine from the CNIL regulator for failing to provide transparent and easily accessible information on its data consent policies, a statement said.
 
The CNIL said Google made it too difficult for users to understand and manage preferences on how their personal information is used, in particular with regards to targeted advertising.
 
“People expect high standards of transparency and control from us. We're deeply committed to meeting those expectations and the consent requirements of the GDPR,” a Google spokesperson said in a statement.
 
 
Photo: AFP
   
“We're studying the decision to determine our next steps.” 
   
The ruling follows complaints lodged by two advocacy groups last May, shortly after the landmark GDPR directive came into effect.
   
One was filed on behalf of some 10,000 signatories by France's Quadrature du Net group, while the other was by None Of Your Business, created by the Austrian privacy activist Max Schrems.
   
Schrems had accused Google of securing “forced consent” through the use of pop-up boxes online or on its apps which imply that its services will not be available unless people accept its conditions of use.
   
“Also the information provided is not sufficiently clear for the user to understand the legal basis for targeted advertising is consent, and not Google's legitimate business interests,” the CNIL said.
 
“The amount decided, and the publicity of the fine, are justified by the severity of the infringements observed regarding the essential principles of the General Data Protection Regulation (GDPR): transparency, information and consent.” 
 
“Moreover, the violations are continuous breaches of the Regulation as they are still observed to date. It is not a one-off, time-limited, infringement.”
 
Special responsibility
 
The GDPR is widely considered the biggest shake-up to data privacy regulations since the advent of the web.
   
Even companies which are not based in Europe must follow the tough new rules if they want their sites and services to be available to European users.
   
The CNIL found that despite changes implemented by Google since last year, it was still failing to respect the spirit of the new rules.
   
It noted for example that specifics on how long a person's data is kept and what it is used for are spread across several different web pages.
 
France to appeal after Google escapes €1.1bn tax bill
Photo: AFP
   
Modifying a user's data preferences also requires clicking through a variety of pages such as “More Options”, and often the choices to accept Google's terms are pre-checked by default.
   
“This type of procedure leads the user to give global consent… but the consent is not 'specific' as the GDPR requires,” the regulator said.
 
It said the record 50-million-euro fine reflected the seriousness of the failings as well as Google's dominant market position in France via Android.
 
“Each day thousands of French users create a Google account on their smartphones,” the CNIL said. 
   
“As a result the company has a special responsibility when it comes to respecting their obligations in this domain,” it said.
 
It is not the first time the regulator has taken Google to task over its policies.
   
In 2014 it fined the company 150,000 euros — the maximum possible at the time — for failing to comply with its privacy guidelines for personal data.
 
And in 2016 it imposed a 100,000-euro penalty over non-compliance with the EU's “right to be forgotten” rule, allowing people to request having references to them removed from search results.
   
Goole has contested the decision, saying it should apply only to its European sites, such as Google.fr, and not the global Google.com domain.
   
Earlier this month the advocate general for the European Court of Justice in Luxembourg sided with Google in the case, though a final ruling has not yet been announced.

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BUSINESS

Google News to return to Spain after seven-year spat

Google announced Wednesday the reopening of its news service in Spain next year after the country amended a law that imposed fees on aggregators such as the US tech giant for using publishers’ content.

Google News to return to Spain after seven-year spat
Google argues its news site drives readers to Spanish newspaper and magazine websites and thus helps them generate advertising revenue.Photo: Kenzo TRIBOUILLARD / AFP

The service closed in Spain in December 2014 after legislation passed requiring web platforms such as Google and Facebook to pay publishers to reproduce content from other websites, including links to their articles that describe a story’s content.

But on Tuesday the Spanish government approved a European Union copyright law that allows third-party online news platforms to negotiate directly with content providers regarding fees.

This means Google no longer has to pay a fee to Spain’s entire media industry and can instead negotiate fees with individual publishers.

Writing in a company blog post on Wednesday, Google Spain country manager Fuencisla Clemares welcomed the government move and announced that as a result “Google News will soon be available once again in Spain”.

“The new copyright law allows Spanish media outlets — big and small — to make their own decisions about how their content can be discovered and how they want to make money with that content,” she added.

“Over the coming months, we will be working with publishers to reach agreements which cover their rights under the new law.”

News outlets struggling with dwindling print subscriptions have long seethed at the failure of Google particularly to pay them a cut of the millions it makes from ads displayed alongside news stories.

Google argues its news site drives readers to newspaper and magazine websites and thus helps them generate advertising revenue and find new subscribers.

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