Google Analytics – What would be the consequences of a ban?

First of all, a ruling was issued in Austria in December according to which the use of Google Analytics is not compatible with EU law. 

A little later, the French data protection authority CNIL instructs a French website manager to comply with the GDPR and, if necessary, to stop using this service under the current conditions. And the Dutch supervisory authority AP warns: "Attention: The use of Google Analytics could soon be banned." If this actually happens, concepts must be rethought and marketing strategies rewritten.

This ruling could not only have set a ball rolling, but could also put digital marketing as a whole under pressure: In January, a decision by the Austrian Data Protection Authority (DPO) became public. Among other things, it states:

"In the opinion of the data protection authority, the tool Google Analytics (at least in the version of 14 August 2020) can therefore not be used in accordance with the requirements of Chapter V GDPR."

Data protection authorities sound the alarm

At the heart of the matter is a violation of the general principles of data transfer pursuant to Article 44 GDPR. According to the Austrian authority, the standard protection clauses that the website operator had concluded with Google do not offer an adequate level of protection, since Google, as a provider of electronic communications services, is subject to surveillance by US secret services in accordance with 50 U.S. Code § 1881a (FISA 702). 

The additional measures taken are also not effective, "as they do not eliminate the surveillance and access possibilities by US intelligence services," it said. It was the first decision of a total of 101 model complaints that Noyb has filed across Europe. Noyb is a non-governmental organisation based in Vienna and is committed to the enforcement of data protection within the European Union.

A few weeks later, a decision by the French Data Protection Authority (CNIL) followed the decision from Austria and called on a French website operator to stop using Google Analytics. "In the long term, we either need adequate data protection in the US, or we will end up with separate products for the US and the EU. 

Personally, I would prefer better protection in the USA, but that is a matter for the US legislator," commented Noyb initiator Max Schrems on the current development. Schrems is an Austrian lawyer and data protection activist.

Important, but not indispensable

Google Analytics is still the dominant tracking tool. Depending on the source, it is used by an estimated 50 to 80 percent of all websites. The classic version – which is sufficient for SMEs – is offered free of charge. For this reason alone, non-use would be inconvenient. "But Google Analytics is not indispensable," says Maren Seitz, Senior Director of Analytics Partner. According to the expert, the judgments and warnings should be taken seriously. "Site operators have a duty here, and should inform themselves urgently and take measures." 

This includes, for example, concluding a corresponding order processing contract, activating IP anonymization, integrating consent tools, and so on. "On the Google side, too, it is to be expected that the company will react to increasing pressure," says Seitz. 

From their point of view, however, the actual question is quite different – what and how much data is left in the end to actually allow reliable targeting and impact measurement? How reliable and useful are the results?

"More and more users do not want to be tracked, and so the basis for measurements at the user level has been crumbling for a long time," says the expert. The trend towards ever stronger protection of privacy is also evident in case law. 

And with this comprehensive development, the uncertainty for website operators continues to grow. In addition, it is no pleasure for website operators to constantly deal with whether a chosen solution complies with the current or possibly upcoming regulations. Long-term legal certainty would be desirable for all market participants. But that hardly seems to be possible with Google Analytics.

Multiple links can become a problem

If the use of Google Analytics were to become illegal in the EU in the future, this would have lasting consequences for online advertising. "That would be a huge impact on the entire digital industry," says Markus Forster, Managing Director of Fusedeck. 

On the one hand, the use of Google Analytics is very widespread and, on the other hand, other tools and services that work under similar conditions are also affected. "This calls into question today's use of the Internet, and also online advertising as we know it, and could bring about fundamental changes in Europe."

Another problem is likely to lie in daily business. Google Analytics is also a part of the Google Marketing Platform and is linked to other solutions at different levels for advertisers. According to Forster, it is relatively easy if – as so often – Google Analytics is used for pure web analytics. In this case, the tool would be technically directly substitutable with other GDPR-compliant tools.

Breaks in the process chain threaten

However, with a holistic link with all services of the Google Marketing Platform, Forster assumes that if Google Analytics is switched off, there will be a break in the media process chain, "which will lead to an extensive new setup for advertisers, such as new tracking concepts or data protection-compliant aggregation of data."

Using alternatives to Google Analytics would therefore be possible in principle. According to Fusedeck's experience, a changeover is usually easily feasible. "The transition can also take place in stages, so that the tools are used side by side in parallel during a transitional period," says Forster. When making the selection, the expert recommends relying on European providers who do not transport data to so-called "unsafe third countries" such as the USA.

Future-proof the marketing strategy

According to Seitz, a future-proof marketing strategy must also look for alternatives to individual tracking. While many companies were initially "paralyzed" by the developments, Analytic Partners now sees a clear willingness to act and is experiencing a boom in the interest in modern marketing mix models that should make it possible to evaluate the effectiveness of activities even without tracking data. No individually identifiable data is processed, but outputs, impressions and other metrics are applied. Furthermore, CRM data and the installation of targeted experiments help.

"From our point of view, there is no reason to panic," says Seitz. "In the short term, measures can be taken to provide legal protection. In the medium term, it is necessary to look for future-proof measurement methods anyway – which certainly exist."