Google Accused of Shadow Lobbying Against California Privacy Opt-Out Law

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California’s Assembly Bill 566 (AB 566) has become one of the most hotly contested pieces of privacy legislation in the country. The bill would require universal “opt-out preference signals” in web browsers and mobile operating systems, allowing consumers to automatically block the sale and sharing of their personal data across the internet. Proponents—including the California Privacy Protection Agency, Consumer Reports, and Mozilla—hail the measure as a long-overdue step to simplify consumer privacy choices and push back against the relentless surveillance economy.

But opposition is fierce. Tech industry groups, the California Chamber of Commerce, and front groups like the Connected Commerce Council argue that AB 566 could devastate small businesses reliant on targeted advertising, cause job losses, and diminish consumers’ online experiences by pushing more sites toward paywalls. Critics also point to technical ambiguities in the bill, arguing that implementation challenges could create confusion and harm innovation.

At the center of the controversy is Google. While not publicly opposing AB 566, Google is accused of orchestrating a shadow lobbying campaign through “astroturfing”—funding and leveraging groups like the Connected Commerce Council to manufacture the appearance of grassroots opposition. Emails sent to small businesses on Google’s mailing lists warned of dire consequences if the bill passed, urging them to sign petitions against it. This covert strategy, critics argue, undermines democratic debate and hides the real corporate interests at play.

The debate over AB 566 reveals the fault lines between consumer rights, corporate power, and the future of digital privacy. Is California moving toward a fairer internet where individuals control their data, or are powerful corporations rewriting the rules to protect their profits? This episode explores the stakes of the bill, the role of astroturf lobbying, and what it all means for the future of online privacy.

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