Google says its computers will soon stop reading the emails of its Gmail users to personalise their ads, a move that addresses a longstanding privacy concern about a product that is central to its growing corporate services business.
The core unit of Alphabet has mined users’ emails for personal data to serve them more relevant ads since it launched Gmail in 2004, which almost immediately sparked privacy concerns.
On Friday, the company said it would stop the practice later this year to align its free Gmail service with its corporate -offering.
Corporate Gmail already doesn’t mine emails for information, but Google’s business model of collecting user data generally has added to concerns about privacy that complicate its effort to sell more technology to corporations.
Google says that unlike with its free, advertising-supported services for consumers, it doesn’t mine corporate clients’ data for advertising. “Google’s (corporate) customers own their data, not Google,” the company said in an online post.
Google is betting that selling online services, including Gmail, to other companies and hosting firms’ data and systems on its computers can one day surpass the revenue of its massive advertising business, which brought in nearly $US80 billion last year.
Google doesn’t report revenue for its cloud business, but the non-advertising segment that it is part of grew 41 per cent to $US10bn last year. Google is increasing its sales push in that cloud industry to catch up to ¬market leaders Amazon and Microsoft.
Google’s practice of scanning emails for user data is also the subject of a federal lawsuit that accuses the firm of violating privacy laws by scanning emails of non-Gmail users. A federal judge rejected a proposed class-action settlement in the case in March, saying it didn’t go far enough.
Even with the change, free Gmail users will still see ads above their emails, but those ads will just be personalised from the other data Google collects about the users, including their location, internet searches and web history.
Still, losing data from email correspondence is likely to ¬weaken Google’s profiles of users, which enable the company to charge advertisers more to target specific groups of consumers. Google appears to be betting that reassuring its lucrative corporate customers that their emails are safe is worth the trade-off.
Culled from fox business news
