Internet search giant Google (NASD: GOOG) has some explaining to do on the issue of privacy. Regulators around the world have been uncomfortable with some of the firm’s practices for years, and the latest in the ongoing saga comes from the European Union.
The firm will have to appear before a group of EU data-privacy watchdogs as part of a probe that may lead to what the regulators called coordinated “repressive action” after it failed to fix flaws in its privacy policy. Throughout the course of similar issues, Google has maintained a posture that it’s practices are fair and open, contrary to the allegations. Google spokesperson Al Verney commented, “Our privacy policy respects European law and allows us to create simpler, more effective services. We have engaged fully with the CNIL throughout this process and will continue to do so going forward.”
Google, which operates the world’s largest search engine, contends with privacy investigations by authorities around the world, at a difficult time as it seeks to increase new products and services to compete with Facebook for both users and advertisers. Last year, Google adopted a uniform set of policies for more than 60 products, unleashing criticism from regulators and consumer advocates concerned it isn’t protecting data it collects. Google may face repressive action because it failed to give “any precise and effective” responses to the EU group’s recommendations, CNIL said last week. Google said then that it had answered on Jan. 8, listing changes it’s made to improve the protections and asking to meet to discuss the case.
Earlier, Google and CNIL disagreed over the quality of the responses to data-protection concerns. Google twice defied requests to delay implementing the streamlined privacy policy until CNIL could review it. Google then gave what CNIL called “often incomplete” information in response to a list of 69 questions, earning a rebuke in May and more questions. CNIL’s fining powers pale in comparison with Google’s financial might. The company earned more than $10 billion last year and CNIL’s heaviest fine to date was 100,000 Euros ($131,300) — against Google in 2011 for breaches related to its Street View mapping service.
Data privacy is a growing issue around the world, as people spend more and more of their time connected through the internet. Tracking and storing of personal information, and potentially selling it without the customer’s knowledge are core concerns, despite the fact that Google’s privacy policy explicitly prohibits that. Nonetheless, the EU is vigorously pursuing the charges, and likely will continue to do so.
