J. Thomas Rosch, Commissioner of the US' Federal Trade Commission (FTC), has reportedly expressed concern over the privacy solutions unveiled by US-based Google, Inc. and Microsoft Corp. for their respective browsers. The features may actually work to the companies' benefit at the expense of rivals, he noted in remarks prepared for an appearance at the recently held American Bar Association's Consumer Protection Conference in Washington, DC. The Commissioner also expressed scepticism about the Do Not Track mechanism unveiled as a feature of the open-source Firefox browser.
Google and Microsoft recently launched technologies designed to prevent the monitoring of web users to serve them tailored advertising. The tools are seen as preventative gestures by the Internet giants, intended to appease regulators keen on bolstering online privacy. In December 2010, the FTC had proposed a 'Do Not Track' tool for Internet users.
According to the FTC, the tool ought to enable registered Internet users to browse without leaving a trail of data accessible to online advertisers. When the FTC issued its original privacy report endorsing the tool, Rosch issued a statement generally supportive of the idea. However, at the ABA event, he stated that his opinion was still evolving. He noted that unlike many other firms, Microsoft and Google draw a mixture of revenue from both display and search advertising. Display advertising that keys on user behaviour is seen to be a relatively minor aspect of Google's business, which relies heavily on search. Microsoft has invested heavily in its own search-advertising business, while also shouldering the operation of search services on Yahoo Inc.'s web pages as part of a revenue-sharing partnership.
The FTC released its preliminary privacy report in December. It opened the issue up to public comments until February 18. According to a Microsoft representative, the company is in the process of preparing comments on the matter, including discussion of the new 'tracking protection' feature for the company's Internet Explorer browser.
Google unveiled its Do Not Track tool in January 2011. Called Keep My Opt-Outs, the tool enables users of the company's Chrome Internet browser to avoid behavioral tracking.
Analysts say firms that rely heavily on behavioral targeting could be hurt by Do Not Track tools. While online privacy concerns have been increasingly raised by regulators, they have largely left it to the Internet industry to set its own standards. That's due in part to a desire to protect users without at the same time choking off advertising revenue that supports a variety of free Internet services and content.
According to a Marketwatch report, the FTC has lately expressed impatience with the Internet industry's own efforts to safeguard privacy. In December, the regulator said industry efforts at self-regulation "have been too slow, and up to now have failed to provide adequate and meaningful protection".
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