IT chiefs eye Google's privacy dispute with interest

Google's changes to its privacy policy could affect how other firms treat data sharing

IT chiefs have been urged to keep a close eye on the changes Google has made to its privacy policy, as the fallout could have ramifications for how they deal with data protection in their own firms.

Google's new privacy policy came into effect today, amid howls of protest from privacy campaigners and warnings from data protection regulators that the changes may breach European laws.

Google has brought together more than 60 product-specific privacy policies into a single document.

This change has not affected existing privacy settings or how personal information is shared outside of Google, Alma Whitten, director of privacy, product and engineering, wrote on the company's blog.

But Google pressed ahead with the changes, despite concerns from European regulators.

French regulators are currently speaking to Google on behalf of all European data protection watchdogs to ensure the changes comply with European data protection laws.

"Any organisation that processes personal data must be open and upfront about how this information will be used and for what purpose," a spokeswoman for the Information Commissioner's Office told Computing.

Most consumers are unlikely to notice any difference in the way Google treats their personal data as a result of the policy change, said Dale Vile, chief executive of analyst group Freeform Dynamics.

Nevertheless, the outcome of the data protection regulator's investigation could have important ramifications for other businesses, he added.

“Customers can expect that in some businesses – particularly in the financial services sector – personal information collected in one part will not be shared with another,” said Vile.

In other circumstances, it may be irritating to call up a company and find they have no record of you because the data is kept by a separate branch.

"Other businesses will be watching this case carefully to see what conditions are placed on the sharing of information," he said.