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Google Topics as a way out of the cookie dilemma?

Marius Köppel, Jan-Philipp Muttach, Gerrit Hornung

TL;DR

This paper analyzes Google Topics as a potential cookie alternative in the wake of Planet49 and Cookie Consent II, focusing on German TTDSG and GDPR compliance. It contrasts Topics with FLoC, detailing Topics’ browser-centric, predefined-topic approach, weekly updates, and on-device storage, while evaluating legal obligations for storage, access, and subsequent processing. The analysis shows that TTDSG §25 governs storage and access and typically requires consent, with GDPR governing later processing; a multi-layer, recipient-specific consent framework may be necessary, potentially centralized at browser installation. The findings illuminate regulatory complexities and suggest that a centralized consent model could ease usability and transparency, though the actual impact on the online advertising market remains uncertain.

Abstract

The paper discusses the legal requirements and implications of the processing of information and personal data for advertising purposes, particularly in the light of the "Planet49" decision of the European Court of Justice (ECJ) and the "Cookie Consent II" decision by the German Federal Court (Bundesgerichtshof, BGH). It emphasises that obtaining explicit consent of individuals is necessary for setting cookies. The introduction of the German Telecommunication Telemedia Data Protection Act (Telekommunikation-Telemedien-Datenschutzgesetz, TTDSG) has replaced the relevant section of the German Telemedia Act (Telemediengesetz, TMG) and transpose the concept of informed consent for storing and accessing information on terminal equipment, aligning with Article 5(3) ePrivacy Directive. To meet these requirements, companies exploring alternatives to obtaining consent are developing technical mechanisms that rely on a legal basis. Google tested initially "Federated Learning of Cohorts" (FLoC) as part of their "Privacy Sandbox" strategy. This technology was significantly criticized, Google introduced a new project called "Google Topics", which aims to personalize advertising by categorizing users into interest groups, called topics. Implementation of this technology began in July 2023.

Google Topics as a way out of the cookie dilemma?

TL;DR

This paper analyzes Google Topics as a potential cookie alternative in the wake of Planet49 and Cookie Consent II, focusing on German TTDSG and GDPR compliance. It contrasts Topics with FLoC, detailing Topics’ browser-centric, predefined-topic approach, weekly updates, and on-device storage, while evaluating legal obligations for storage, access, and subsequent processing. The analysis shows that TTDSG §25 governs storage and access and typically requires consent, with GDPR governing later processing; a multi-layer, recipient-specific consent framework may be necessary, potentially centralized at browser installation. The findings illuminate regulatory complexities and suggest that a centralized consent model could ease usability and transparency, though the actual impact on the online advertising market remains uncertain.

Abstract

The paper discusses the legal requirements and implications of the processing of information and personal data for advertising purposes, particularly in the light of the "Planet49" decision of the European Court of Justice (ECJ) and the "Cookie Consent II" decision by the German Federal Court (Bundesgerichtshof, BGH). It emphasises that obtaining explicit consent of individuals is necessary for setting cookies. The introduction of the German Telecommunication Telemedia Data Protection Act (Telekommunikation-Telemedien-Datenschutzgesetz, TTDSG) has replaced the relevant section of the German Telemedia Act (Telemediengesetz, TMG) and transpose the concept of informed consent for storing and accessing information on terminal equipment, aligning with Article 5(3) ePrivacy Directive. To meet these requirements, companies exploring alternatives to obtaining consent are developing technical mechanisms that rely on a legal basis. Google tested initially "Federated Learning of Cohorts" (FLoC) as part of their "Privacy Sandbox" strategy. This technology was significantly criticized, Google introduced a new project called "Google Topics", which aims to personalize advertising by categorizing users into interest groups, called topics. Implementation of this technology began in July 2023.
Paper Structure (9 sections, 2 figures)

This paper contains 9 sections, 2 figures.

Table of Contents

  1. Introduction
  2. Functioning of FLoC
  3. How Google Topics works and differences to FLoC and cookies
  4. Legal assessment of Topics
  5. Compatibility of Topics with Section 25 TTDSG
  6. Applicability of Section 25 TTDSG to Topics
  7. Legitimacy of storing and accessing Topics
  8. Compatibility of Topics with the GDPR
  9. Conclusion

Figures (2)

  • Figure 1: Figure \ref{['fig:first']} shows the usage of first party cookies to handle basic website functionalities, while Figure \ref{['fig:third']} shows the usage of third party cookies to establish user profiles for advertising purposes. The logo from Juventus Turin was taken from turin.
  • Figure 2: Simplified sketch of the working principle of Google Topics.