Google was accused of exploiting a regulatory loophole to block a startup from accessing the Gmail API.
Based in London Gener8 said the API was “critical” to its business. The company offers users control over the data collected by Gmail and other providers, allowing users to monetize their information.
Thousands of companies already collect and sell this data. Google, for example, The fourth most valuable companies in the world.
Gener8 promises to take back power. The startup has developed an app that shows users the data that companies have about them.
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You will then be presented with two options. One will prevent tracking by third-party companies. The ads they support will then be removed from browsers.
The other option is for Gener8 to anonymize, aggregate and monetize user data. In return, the startup provides points. These can then be exchanged for products, discounts and donations.
The service has proven popular. Since its launch in 2018, Gener8 over 1 million users, £9 million in funding and effusive praise in the legendary Dragons' Den.
After reaching a valuation of £39 million last month, the startup said it was on track to Become a unicorn this decade. Google's intervention could bring the plan to a halt.
A regulatory gap?
The Gmail API gives Gener8 access to electronic receipts, which the company can then extract and sell. anonymized transaction data.
Gener8 was open about the service. When the startup requested access to the Gmail API, it explained its plan to commercialize the data.
In January 2023, Google approved the application. But 18 months later, the company changed its mind.
In July, Google sent a message to Gener8, removing access to the Gmail API because there were indications that Gener8 was selling Gmail data.
Sam Jones, founder and CEO of Gener8, called the move “predatory behavior” and “a clear attempt to suppress a disruptive challenger.”
“They put their hand around our throats in a really anti-competitive way,” Jones told TNW.
Gener8 has been accused of violating Google's policies, but the startup suspects the real explanation is a loophole in regulation.
For services such as Search and the Play Store, which fall within the scope of the EU Digital Markets Act, Google has introduced a Data Portability API. This allows users to transfer their data to Gener8.
However, Gmail was overlooked in the DMA determination. As a result, the service is not subject to the same scrutiny as search or the Play Store.
But this reveals a strange contradiction in Google's approach.
The Google Rulebook
The Gmail API and the Data Portability API are subject to the same personal data protection policy, but the rules seem to be applied inconsistently.
Gener8 has also requested access to the Data Portability API. In this request, Google did not express any concerns about the sale of data.
Jones has an explanation. “Google's interpretation of its own policies seems to depend on whether a regulator is watching,” he said.
Jones has announced that he will take action against Google's decision. He accuses the company of attacking consumer choice and fair competition. He warns that other data companies could also suffer the consequences.
Gener8 hopes that Gmail will soon be subject to stricter DMA obligations. The startup also suspects that removing access to Gmail IP would violate GDPR rights to data portability.
Developments in Gener8's home country provide another reason for optimism. A DMA equivalent is currently being developed in the UK. Gener8 wants the rules to enforce stricter data portability obligations.
“Google often claims to be a pioneer of data portability and user rights,” Jones said. “But we can really judge a company's worth by how it behaves when regulators aren't looking over its shoulder.”
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