Google is fighting a 69.2 billion won (approximately $51.7 million) fine imposed by South Korea’s Personal Information Protection Commission (PIPC) in a lawsuit, challenging penalties for allegedly violating the Personal Information Protection Act. The commission fined Google for collecting user data without consent and using it for targeted advertising. A central issue in the case is the “More Options” feature in Google’s account sign-up process.
The sixth hearing was held Aug. 29 at the Seoul Administrative Court, where both Google and PIPC demonstrated the process for creating a Google account. During account registration, the “More Options” tab appears under the “Privacy and Terms” screen, where users must click to reveal whether they agree to share behavioral data for personalized ads.
Behavioral data refers to a user’s online activities, including browsing and app usage history, purchase records, and search history. This information is crucial for Google, whose primary revenue source is personalized ads. However, the default setting on the “More Options” tab is pre-selected for consent, meaning that users who miss the option or do not adjust it are automatically deemed to have agreed.
PIPC argues that Google’s practice of requiring users to actively withdraw consent after the fact violates the country’s data protection laws. The commission told the court that forcing users to navigate hidden options to opt out of data collection does not constitute informed consent. PIPC also noted that Google uses a different method in Europe, where consent is not pre-selected, and privacy options are not hidden.
Google contends that the responsibility for securing user consent lies with the operators of websites or apps using Google’s data collection tools, rather than with Google itself. The company argued in court that even if it is required to obtain consent, it has followed legal procedures. Google cited court precedents that found consent valid if users are aware of key information. It added that the “More Options” feature was designed to give users more control over their data during the sign-up process, allowing them to withdraw consent, rather than being intended to mislead users.
Google explained that prior to the introduction of the “More Options” feature, users could only revoke consent through separate settings after account creation. By including this feature in the registration process, Google said it aimed to expand users’ ability to manage their data.
