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Analytica House

Mar 21, 2023
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What is GDPR? Is GA4 GDPR Compliant?

What is GDPR? Is GA4 GDPR Compliant?

Data privacy has become increasingly important in recent years. This is due to consumers’ and users’ concerns about protecting their personal data and governments enacting various laws to safeguard that data. In this article, we’ll focus on Google Analytics 4’s (GA4) data privacy features and examine whether these features comply with the General Data Protection Regulation (GDPR).

What Is GDPR?

GDPR (General Data Protection Regulation) is a data privacy regulation that came into effect in 2018. It governs how organizations in the European Union collect, process, and store personal data. GDPR adopts a user-centric approach to privacy, requiring organizations to explain what data they collect, how they use it, and with whom they share it.

Whom Does GDPR Cover?

GDPR sets standards for processing personal data in the EU and the European Economic Area (EEA), establishing principles of transparency, fairness, purpose limitation, accuracy, integrity, and confidentiality.

All companies operating within the EU or EEA must comply with GDPR when processing personal data. Moreover, any company outside the EU/EEA that handles personal data of EU/EEA residents must also adhere to GDPR rules.

For example, an EU citizen visiting Turkey as a tourist falls outside GDPR’s scope while abroad. Conversely, a non-EU citizen in an EU country is protected under GDPR. If a U.S. citizen visits Germany, German organizations must handle that person’s data in compliance with GDPR, even though the individual is not an EU citizen.

Does GDPR Apply in the U.K.?

GDPR took effect in the U.K. in May 2018. After Brexit, the U.K. incorporated GDPR into its own Data Protection Act, maintaining equivalent protections for personal data.

History of Privacy Fines Against Google Analytics

GDPR has empowered data subjects with greater control over their personal information. Since its enforcement on May 25, 2018, Google has faced significant fines under GDPR. In March 2020, Sweden fined Google LLC €7 million for violating Article 17(1)(a) by not removing search results upon request. Then in December 2021, France’s CNIL fined Google €150 million because users could not refuse tracking cookies as easily as they could accept them. Google Ireland was fined €60 million, and Google LLC €90 million for the same issue.

French regulators also rejected GA4’s IP-anonymization as insufficient to protect data transferred to the U.S. The EU Court of Justice in July 2020 invalidated the Privacy Shield framework governing EU-U.S. data transfers, further complicating Google’s ability to move EU data to its U.S. servers.

Other data protection authorities in Austria, the Netherlands, and Norway have similarly found Google Analytics non-compliant with GDPR, threatening fines or restrictions.

What Is Personally Identifiable Information (PII)?

PII refers to any data that can identify an individual—name, address, birthdate, phone number, email, national ID, passport number, etc. Protecting PII is critical because its exposure can reveal someone’s identity and personal details.

GA4’s User Privacy Features

Google Analytics 4 offers several privacy-focused settings, allowing site owners to honor user consent while still gaining useful insights. Two key areas under Data Settings are Data Collection and Data Retention. Let’s explore them.

Data Collection Settings

You can access Data Collection under Admin > Data Settings > Data Collection:

Data Collection Settings

Google Signals

Google Signals
Enabling Google Signals allows GA4 to link signed-in users’ site/app data with their Google accounts, provided they’ve consented to ad personalization. Signals lets you use location, search, YouTube, and partner-site data in aggregate, anonymized reports. Users can manage this via myactivity.google.com.

Location & Device Data

Turning on these options lets Analytics collect geographic and device information, with the ability to exclude specific countries.

User Data Collection Consent

Here, you confirm that your site/app informs users how their data will be collected and shared with Analytics, and that you’ve obtained their consent accordingly.

Data Retention Settings

Data Retention Settings

Data Retention lets you choose how long user-level and event-level data are kept (2 or 14 months). You can also reset user data on each new session. Your choice should reflect your industry’s needs and the sensitivity of the information collected.

IP Anonymization

GA4 anonymizes the last 8 bits of each user’s IP address by default, fully embedding anonymization in its data model. This protects users’ privacy while still providing geographic and device insights needed for analysis.

Consent Mode

When users deny cookie consent, your Analytics data will be incomplete. Consent Mode uses machine learning to model those users’ behavior based on similar consenting users, preserving privacy while retaining useful insights in your reports.

Server Location & Data Transfer Restrictions in GA4

Under GDPR, transferring personal data from the EEA or U.K. to outside jurisdictions without adequate safeguards is restricted. GA4 users cannot choose where their data is stored—much of Google’s infrastructure is in the U.S. If you process EU/U.K. personal data in GA4, you must ensure compliant transfer mechanisms are in place, often requiring legal consultancy.

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