Google, ClassDojo Attract UK Regulatory Scrutiny For Compromising User Privacy Via EdTechs

by Anusuya Lahiri, Benzinga Editor
August 31, 2022 6:09 AM | 2 min read |
  • Edtech companies like Alphabet Inc GOOG GOOGL Google came under scrutiny for allegedly breaking U.K. data laws, the Financial Times reports. 
  • The companies reportedly left children's data vulnerable to commercial exploitation as the schools adopted free remote learning software during the pandemic.
  • The Information Commissioner's Office and the Department for Education highlighted the policies of popular edtech products Google Classroom and ClassDojo following an investigation by children's digital rights charity 5Rights.
  • The research disclosed how third parties and Google tracked data to infer preferences and serve personalized advertising when users clicked on external links. 
  • The two companies allegedly have opaque privacy terms inconsistent with U.K. data protection law.
  • The report argued that the government should require edtech providers to state clearly and transparently the nature of the data collected and used on children, with regular independent audits. 
  • The ICO expressed interest in any evidence of edtech that does not comply with the law.
  • Google and ClassDojo denied the allegations citing clear privacy policies.
  • Some regions in Denmark and Germany have banned using Google products in schools. In 2021, the Dutch Data Protection Authority threatened to ban Google's Chromebook laptops and educational software for compromising children's privacy, while Google settled the matter later.
  • The breach could lead to a potential penalty of up to 4% of global turnover for companies.
  • The global edtech and smart classrooms market will likely reach $258.9 billion by 2028, rising at a 12.8% CAGR.
  • London emerged as the top European city for edtech as the pandemic accelerated online learning and development.
  • London was the only European city in the global top 10 for VC investment. London's edtech ecosystem is worth ~$3.4 billion.
  • Price Action: GOOG shares traded higher by 0.46% at $110.42 in the premarket on the last check Wednesday.
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