At first glance consumers may wonder what is the big deal if Google knows where they are or where they shop.
But what consumers might not know is how valuable that is to Google.
Google can sell that information to advertisers who can target you precisely and, in the process, give Google a stranglehold on digital advertising.
This makes it extremely hard for outsiders like the media companies to compete with Google.
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ACCC court action alleges Google misled customers
How Google is keeping an eye on you
The case launched by the Australian Competition and Consumer Commission is a world first and follows through on ACCC chief Rod Sims’ campaign to give consumers power over their data.
If consumers don’t know what the data is used for they may not care, which is why the court case is so important because it will show how the data is used.
The case alleges misleading representation because consumers may think if they turn off their device they turn off the location sensor, which is not necessarily the case.
The action also follows Google’s power in the internet browser market, where things like logging into the ACCC website automatically taps you into the Google network.
The same goes with a range of computer apps and internet pages, thanks to the spread of Google’s control.
This is the first of a series of actions promised by the ACCC and comes as the federal government is formulating its response to the ACCC digital platforms report.
The response is due by the end of the year.
News Corp and other media groups have called for a 12-month inquiry into the adtech market, to lift the lid on how it operates. News Corp publishes The Australian.
The information on location data searches was detailed by Oracle in its submission to the digital inquiry.
Sims has promised several follow-up cases to the Google action.
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The consumer watchdog’s groundbreaking case against Google is the first step towards opening the adtech market controlled by the digital platforms Google and Facebook.