Apple, Google in Violation of Korean Law

As reported in the Joongang Daily, South Korea’s telecommunications regulator announced yesterday that Apple and Google’s location tracking capabilities violate Korean laws, fining Apple Korea and ordering that both companies rectify the issues.The Korea Communications Commission (KCC) has been investigating since April, after two computer engineers argued that the latest version of Apple’s mobile operating system, iOS 4.0, keeps track of users’ locations as far back as June 2010, which was when the operating system was launched. That caused controversy worldwide.

While the Korean government was hardly alone in launching an investigation into location tracking issues, it is the first in the world to actually declare that Apple and Google violated laws and order punitive measures.

According to Location Information Law Article 15, when businesses seek to collect, utilize and offer people’s location data, they should get their consent. Furthermore, Location Information Law Article 16 dictates that businesses take protective technological measures to prevent the data from being exposed, falsified or damaged.

“We haven’t been tracking anyone,” Apple CEO Steve Jobs said earlier this year. “The files they found on these phones were basically files we have built through anonymous, crowd-sourced information that we collect from the tens of millions of iPhones out there.”

Google also explained that “all location sharing on Android is an opt-in by the user.” When a user activates an Android phone, a screen appears saying Google will collect anonymous location data.

Seoul Police Raid Google Korea's Offices

The global controversy over collection and use of location data from Apple and Android smartphones has taken a new turn in Korea.   The media today, including both the Chosun Ilbo and the Joongang Daily, are reporting that the Seoul Metropolitan Police raided Google Korea's offices in Yeoksam-dong. (click on the accompanying graphic to see a full size version)

According to the Chosun Ilbo account, Police said members of their cyber unit conducted the raid Tuesday. They carried away hard drives and other equipment related to Google's AdMob unit, which is suspected of collecting personal location information without authority or permission.The probe is not directly related to a previous investigation of Google in Korea. That probe concerned the incidental collection of personal data while Google cars were cruising through neighborhoods and taking photographs for the company's Street View service.

Are Smart Phones Tracking Users in Korea?

The Joongang Daily this morning carried an article with the accompanying data (click on the graphic to view a full sized version) on the growth of location-based data and location-based service businesses in Korea.  Not surprisingly, the chart shows a rather dramatic increase in the business between 2009 and 2010.  This is exactly what we would expect, given that Apple's iPhone was delayed in coming to the South Korean market and did not arrive here until November of 2009.  While location-data businesses, which include Apple and Google, collect location data, location-based services businesses use that data for various services such as logistics, transportation, or emergency services.
LBS is considered a rising business, and not just in Korea. Research firm Gartner said the market for location-based services - currently worth $2.9 billion - will to rise to $8.3 billion in 2014.

Some Context for the Police Raid on Google Korea Offices

Press reports provide additional context surround the policy raid on Google Korea's offices, as noted in my previous post.  As reported in The Korea Times, the raid here was unexpected, as the company had been talking closely with the Korea Communications Commission on how to handle the data it had collected.  Talks with the KCC were reportedly focused more on retrieving the data than on destroying it and the police raid came as a surprise.  Korea is one of about a dozen countries, including the U.S., Canada, Germany, France, Britain and Australia, that are investigating whether Google broke their privacy laws in pushing out he localized versions of street view.

Police Raid the Office of Google Korea

As reported in most of the local media and in The New York Times, Korean police raided the offices of Google Korea on Tuesday as part of an investigation into whether the company had illegally collected and stored personal wireless data.  The search company is already facing lawsuits and investigations in several countries in connection with private wireless data collected for its Street View service.From late last year until May, Google Korea dispatched cars topped with cameras to cruise around the country to photograph neighborhoods before the planned introduction of Street View. The police suspect that those cars might have illegally captured and stored personal data from wireless networks while they were mapping streets, a statement by the Cyber Terror Response Center of the Korean National Police Agency said. Google said it would cooperate with the investigation. This is a story that bears following, especially since Google is already facing investigations and questions in several other countries on this same issue.