Apple Followed by Google Strengthening Privacy Policies... Limiting User Data Tracking

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] Following Apple, Google has also decided to limit the tracking of individual application (app) user information and activities to protect smartphone users' privacy. As 'personalized' advertising using smartphone user information becomes more difficult, significant changes are expected in the digital advertising market.

According to industry sources on the 18th, Google recently decided to introduce the 'Privacy Sandbox' system, which strengthens user privacy protection on Android smartphones.

This system replaces the advertising ID with a new identification code that offers enhanced privacy protection. The purpose is to prevent the external leakage of advertising IDs containing personal data. Until now, Google has sold advertising IDs to advertising companies. These companies could use the advertising IDs to understand users' interests and provide 'personalized' ads.

Google plans to collaborate with related companies such as game company Activision Blizzard and social networking service (SNS) Snap to develop the new code necessary for enhanced privacy protection. A beta test version is scheduled to be released in the second half of this year, and the official application of the new identification code is expected to take place in two years. Google will maintain the existing policy until the new identification code is applied.

Anthony Chavez, Vice President of Security and Privacy at Google Android, explained, "Google's goal is to develop an effective advertising solution that strengthens personal privacy," adding, "Users will have their personal information protected, and app developers and companies will have the tools to succeed in the mobile market."

This decision by Google is expected to significantly change the revenue structure of the digital advertising industry. Since both Apple and Google, the two giants of the global IT industry, are implementing policies to strengthen privacy protection, 'personalized' advertising using smartphone user information has become difficult. In fact, the day after Google's announcement, its stock price plunged more than 26%, wiping out $232 billion in market capitalization in a single day. Meta's market capitalization, which exceeded $1 trillion last year, has now fallen below $600 billion.