Google Faces Italian Antitrust Probe on Data Practices

The Italian Competition Authority (AGCM) has launched an investigation into Google and its parent company, Alphabet, focusing on potential unfair practices related to user data consent. Speaking to Reuters, the AGCM says the inquiry examines whether Google’s process for obtaining user permission to link its services misleads consumers about their data usage implications. Allegations of Misleading Consent Requests AGCM claims Google’s consent requests for combining services like YouTube, Gmail, and Maps might qualify as unfair and overly assertive. The authority argues that Google’s information is insufficient and doesn’t clearly outline how consent affects personal data usage across these services. This ambiguity, AGCM suggests, could undermine user autonomy by nudging them into consenting to extensive data sharing. A Google spokesperson has indicated to Reuters the company’s intention to review the investigation details and collaborate with the regulator. Italian consumer rights laws impose fines on companies that violate these rules, ranging from €5,000 to €10 million. Historical Context of Antitrust Actions AGCM has previously penalized Google. In 2021, both Google and Apple faced €10 million fines each for unclear disclosure of data usage for commercial purposes. Earlier that year, Google was fined over €100 million for blocking Enel X’s app from its Android Auto platform, which AGCM considered an abuse of market power. Google faces multiple legal challenges globally. In the U.S., it is involved in a major antitrust trial, where the Department of Justice accuses it of monopolizing search engines and online advertising. Final arguments were presented in May, with a decision anticipated soon. Previous Penalties and Market Dominance AGCM’s actions against tech giants are not isolated to Google. In 2021, Amazon received a €1.13 billion fine for misusing its market position by favoring sellers that utilized its logistics services. This remains one of the steepest fines against an American tech company in Europe. Despite regulatory scrutiny, Google’s business growth continues, evidenced by its plans to acquire cybersecurity firm Wiz for $23 billion—a deal that would be its largest acquisition to date.