Consumers in the middle of Google-Facebook battle

ByABC News
January 25, 2012, 10:11 PM

— -- Google and Facebook might have finally gotten the average consumer riled up about privacy.

For the past two years, each company has experimented with different ways to divine more and more about how people live their lives on the Internet, without sparking a revolt.

But the plans the rivals announced on Tuesday, which critics say could dramatically rev up their respective abilities to gather intelligence on individual Internet users, seem to have struck a chord. An informal and unscientific survey of Web users by USA TODAY found a majority speaking out against the new business practices announced by Google and Facebook.

"It's dangerous for two companies to have so much personal data, regardless of whether the specific threats of that data consolidation are immediately clear," says Sarah Downey, a privacy analyst at software maker Abine.

Compelled to tap what many experts predict will be the next big Internet mother lode — online advertising — Google and Facebook laid down very big bets, during a week when European regulators are hashing out strict new rules that could prevent much of what the tech giants seek to do.

Google signaled its intent to begin correlating data about its users' activities across all of its most popular services and across multiple devices. The goal: to deliver those richer behavior profiles to advertisers.

Likewise, Facebook announced it will soon make Timeline the new, more glitzy user interface for its service, mandatory.

Timeline is designed to chronologically assemble, automatically display and make globally accessible the preferences, acquaintances and activities for most of Facebook's 800 million members.

Google and Facebook have repeatedly insisted that the changes are intended strictly to improve users' experiences.

"Facebook works the way it always has," says spokeswoman Meredith Chin. "There is no new information on Facebook as a result of Timeline, and no privacy settings have been changed with the introduction of it. It's simply an updated version of the profile."

But the changes have stirred anger from many consumers. Some, such as Joyce Norman, a writing consultant from Birmingham, Ala., are considering ways to limit their exposure to Google's and Facebook's new business practices. "Mine is not a lone voice crying in the wilderness," says Norman.

Benjammin Gaultney of Montague, Mich., sees it differently, looking forward to the possibility of more appropriate ads coming to his screen. "You have to deal with ads all over the Internet either way," he wrote on USA TODAY's Facebook page. "Advertisers could at least try to sell me something I'm actually interested in rather than life insurance."

Meanwhile, a high-stakes lobbying effort is unfolding in Washington aimed at shaping policies favorable to U.S. tech companies and blunting any potential move to follow Europe's more conservative proposals to limiting online tracking by companies.

The tech giants sharply increased their lobbying spending last year. Google spent $9.7 million in lobbying in 2011, up from $5.2 million in 2010. Facebook spent $1.4 million in 2011 vs. $351,000 in 2010.