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The world does not owe targeted advertising networks a business model, so I am agnostic about Microsoft’s decision to ship Internet Explorer 10 with “Do-Not-Track” enabled by default. Ryan Singel has a good write-up on Threat Level that covers many dimensions of the issue.

Decisions like this are never driven by a single motivation, but I’m interested in the likelihood that Microsoft made this choice hoping to drive a dagger into Google’s business model. To the extent it did, it’s a nice illustration of how competition among companies can serve consumers’ privacy preferences. There is some demand for privacy, though less than most regulatory types believe. Microsoft saw an angle to get some pro-privacy PR, improve consumers’ privacy by a small margin, and hamstring a competitor. You go, girl. Er, Microsoft.

Now, consumers aren’t falling over themselves for protection from the benign practice of tracking for the purpose of delivering targeted ads. I suspect that counter-punches from ad networks and Google will send the Do Not Track header into the dustbin of privacy history right along with P3P. The idea of putting a signal into the header that says “please do not track” is clumsy, to put it charitably.

If you want to avoid tracking, you can do that already. Use Tracking Protection Lists.

Advocates of regulation will credit regulators for the fact that major browser providers Microsoft and Mozilla are going after online “tracking.” In forthcoming versions of their browsers, they will provide controls that protect against unwanted monitoring even better than the controls that now exist.

When consumer advocates cluster in Washington, D.C., asking federal agencies to solve consumer issues, of course, any progress on the issues will be credited to the threat of coercion. But experiments like these have no controls.

Decisions about the qualities of goods and services are made out at the leading edge of consumer demand, where producers work to anticipate developing public interests. Meeting demand after it has been realized is a recipe for business failure because competitors getting there before the others win market share and profits. Laggards are losers.

You can tell when regulators push for something that does not match up with consumer demand as perceived in the business sector. The regulators get nowhere. That would be the FTC’s call a decade ago for a suite of regulations requiring “notice, choice, access, and security.” The current push for “tracking” controls does appear to meet up with consumer demand, and, again, the browser providers are working on it years ahead of what any regulation would have required.

I’ve put “tracking” in scare quotes because the open question is just what anyone means by the word. The report linked above notes a comment from Google, provider of the Chrome browser:

“The idea of ‘Do Not Track’ is interesting, but there doesn’t seem to be consensus on what ‘tracking’ really means, nor how new proposals could be implemented in a way that respects people’s current privacy controls,” said the company…

Maybe Google will be the laggard and loser for not moving on “tracking” as fast as its competitors. That’s one approach, while Microsoft and Mozilla will each take a different tack to the problem. The result will be an experiment that does have controls. The browser provider that meets up with consumer interests, in the consumer-friendliest way, wins. Such would not be the case if a federal regulation—yes, one-size-fits-all—determined what “tracking” was and how browsers or others would provide protection against it.

Marketplace competition will do better than any other known method for determining what “tracking” means to consumers and what to do about it. There is no privacy advocate, there is no technologist, no advocacy group, nor academic who knows what to do here.

The one thing I recommend is that do-not-track efforts should control the content of the header and the domains the browser communicates with. Simply putting a “do-not-track” signal in the header would punt the problem back to regulators and the cadre that surrounds them. This group would come up with something that satisfies itself, the regulatory community, but that does not digest and reconcile actual consumers’ competing interests in privacy, convenience, access to content, and so on.

Recent revelations about Microsoft’s internal debate over Internet Explorer’s handling of tracking cookies, as chronicled by The Wall Street Journal earlier this month, have prompted harsh criticism from self-described privacy groups, who’ve called on Congress to investigate Microsoft’s actions. But as Jim Harper pointed out in an excellent WSJ essay, Web users stand to lose a great deal if online tracking is squelched by the hand of government. Data gathering on the Internet is largely harmless, and individually targeted advertising coexists with robust privacy safeguards.

Over on AOLNews.com, my colleague Carolyn Homer discusses these privacy tradeoffs, arguing that Microsoft and other Internet firms have a strong incentive to set privacy defaults that align with their users’ preferences. She points out that most consumers are, in practice, quite willing to live with allegedly “pervasive” tracking in exchange for the enormous benefits that targeted advertising makes possible. While many surveys and polls indicate consumers are very worried about their privacy, the actual decisions that consumers make every day tell a very different story (as documented extensively by Berin Szoka). From Carolyn’s piece:

A body of research reveals a sizable disparity between how much people say they value privacy and how willing they are to actually protect it. In a 2003 Duke Law Journal article, Michael Staten and Fred Cate found that fewer than 10 percent of users exercise their right to opt out and share less. Conversely, if given the opposite choice, fewer than 10 percent of users elect to opt in and share more. The vast middle is apparently indifferent. If consumers were required to affirmatively opt in before sharing data, the Internet’s prevailing advertising-based business model would be decimated. The effectiveness of online advertising in Europe, for example, fell 65 percent after the European Union in 2002 required a blanket opt-in system. For more than a decade, the Internet has thrived on the assumption that most people believe it is a fair trade to receive free content in exchange for viewing ads. Mere advertisements shouldn’t be equated with gross privacy violations.

She goes on to discuss how privacy settings are evolving as consumer preferences adapt to new technologies and firms experiment with new ways to use and collect data. You can read the rest over at the AOL News website.

Really, what would we do without European antitrust regulators protecting us from the evils of browser innovation? If Microsoft was allowed to actually bundle its Internet Explorer browser alongside its operating system we might actually do something really crazy… like perhaps try it! After all, the latest browser stats make it pretty clear most of us have a choice and that fewer and fewer of us rely on IE. As Erick Schonfeld noted on Tech Crunch today:

The new browser wars on on. More than a decade after Microsoft killed off Netscape with Internet Explorer, competition in the browser market has never been stronger. Just last week, Mozilla released Firefox 3.5, which has now been downloaded nearly 14 million times. Earlier in June, Apple released Safari 4. In March, Microsoft introduced Internet Explorer 8, and Google came out with a speedier beta of its Chrome browser. Some early data is coming in showing relative market share and how fast people are upgrading. If you look at the chart above from Statcounter, it indicates that since March Internet Explorer has lost 11.4 percent market share to other browsers. [..] Where did that go? It went to Firefox, Safari, and Chrome. Nearly 5 percent of that, or about half, went to Firefox 3.0, which currently has 27.6 percent market share. That doesn’t count last week’s upgrade.

08-09 browser stats

Alas, as I pointed out in my essay a few weeks ago (“European Regulators Think Consumers Too Stupid to Know How to Download a Different Browser“), some Euro-crats still seem to believe that changing browsers requires great detective skills to unearth alternatives.  It’s just pure poppycock and yet another sad example of how antitrust law is usually hopelessly behind the times and has absolutely nothing to do with protecting consumers or fostering innovation.

Now, please excuse me while I get back to surfing the Net via Firefox and Chrome (and Opera on my mobile phone). My God, how did I ever find these browser alternatives!

What a victory for privacy and personal responsibility is Chris Soghoian’s Targeted Advertising Cookie Opt-Out (or “TACO” – documented and downloadable here). It signals to the 27 ad networks with well-configured opt-out cookies that you don’t want them to track you.

It’s a technical solution that empowers (and places responsibility with) the user to exercise dominion over his or her personal information. No need for law and regulation. No need to go pleading to politicians and bureaucrats for help.

It’s also a little more efficient than my method of controlling tracking, which is to take a glance at cookies as Web sites ask to set them on my computer.

(The answer is usually “no,” but it’s very interesting to see who all wants to get a glance at me when I visit any site. It’s a lot more than just ad networks, btw. I have no idea why people think ad-network tracking is bad and tracking by others is a matter of indifference.)

Now, Chris and I always find something to disagree about, so for good measure I’ll note that I disagree with his goal of switching targeted advertising from opt-out to opt-in. Continue reading →

Firefox logoAs noted in the first installment of our “Privacy Solution Series,” we are outlining various user-empowerment or user “self-help” tools that allow Internet users to better protect their privacy online-and especially to defeat tracking for online behavioral advertising purposes. These tools and methods form an important part of a layered approach that we believe offers an effective alternative to government-mandated regulation of online privacy.

In the last installment, we covered the privacy features embedded in Microsoft’s Internet Explorer (IE) 8. This installment explores the privacy features in the Mozilla Foundation’s Firefox 3, both the current 3.0.7 version and the second beta for the next release, 3.5 (NOTE – The name for the next version of Firefox was just changed from 3.1 to 3.5 to reflect the large number of changes, but the beta is still named 3.1 Beta 2). We’ll make it clear which features are new to 3.1/3.5 and those which are shared with 3.0.7. Future installments will cover Google’s Chrome 1.0, Apple’s Safari 4, and some of the more useful privacy plug-ins for browsers . The availability and popularity of privacy plug-ins for Firefox such as AdBlock (which we discussed here), NoScript and Tor significantly augments the privacy management capabilities of Firefox beyond the capability currently baked into the browser.  In evaluating the Web browsers, we examine:

(1) cookie management; (2) private browsing; and (3) other privacy features

Continue reading →

By Adam Thierer, Berin Szoka, & Adam Marcus

IE logoAs noted in the first installment of our “Privacy Solution Series,” we are outlining various user-empowerment or user “self-help” tools that allow Internet users to better protect their privacy online-and especially to defeat tracking for online behavioral advertising purposes.  These tools and methods form an important part of a layered approach that we believe offers an effective alternative to government-mandated regulation of online privacy.

In some of the upcoming installments we will be exploring the privacy controls embedded in the major web browsers consumers use today: Microsoft’s Internet Explorer (IE) 8, the Mozilla Foundation’s Firefox 3, Google’s Chrome 1.0, and Apple’s Safari 4. In evaluating these browsers, we will examine three types of privacy features:

(1) cookie management controls; (2) private browsing; and (3) other privacy features

We will first be focusing on the default features and functions embedded in the browsers. We plan to do subsequent installments on the various downloadable “add-ons” available for browsers, as we already did for AdBlock Plus in the second installment of this series. Continue reading →

The European Commission may order Microsoft to strip Internet Explorer from certain versions of Windows, according to a preliminary ruling against Microsoft stemming from a complaint brought by Opera. Opera claims that Microsoft is “abusing its dominant position” by bundling IE with Windows, and consequently denying consumers “genuine choice” among web browsers.

If the European Commission upholds Opera’s complaint against Microsoft, it wouldn’t be the first time Microsoft has been found guilty of antitrust violations stemming from applications bundled with Windows.

Back in 2004, the Commission ruled that it was illegal for Microsoft to bundle its Windows Media Player with Windows and ordered Microsoft to offer a Media Player-less version of the operating system. Microsoft responded by unveiling the wryly named “Windows XP Reduced Media Edition.” Unsurprisingly, the European Commission rejected the name, so Microsoft renamed the OS “Windows N.”

Despite Windows N’s fairly neutral-sounding name, consumers showed little interest in Windows N when it hit the shelves. It’s quite obvious why Windows N was a flop–why would anybody want to run an operating system lacking useful components, especially when plenty of alternatives are available online at the click of a button?

Continue reading →

Microsoft’s share of the browser market across all versions of Internet Explorer has dropped, by one estimate, dropped from 78.58%  in December 2007 to 68.15% in December 2008 (or by just under 8% in another estimate).

[IE’s] share dropped from 69.77% in November to 68.15% in December. [During the same period,] Firefox gained more than half a point and ended up at 21.34%, Safari approaches the [10%] hurdle with 7.93% and Chrome came in at 1.04%, the first time Google was able to cross the 1% mark.

This is particularly interesting: 

Since IE6 is used primarily within corporations, its market share is much higher during the week than it is on weekends. As a result, all other browsers gain on weekends and especially during a holiday. Because of that circumstance, Net Applications noted that the December numbers should be taken with a grain of salt. However, it is worth the note that IE6 achieved … market share numbers of about 28% during the week and about 21% on weekends in early 2008. In December, these numbers were down to about 20% during the week and 15% on weekends.    

So, Microsoft still has an established base among corporate users, where IT administrators  generally prevent employees from installing new applications (including browsers) and the sysadmins often don’t roll out alternative browsers across a corporate network for any one of several possible reasons, including:

  • They just don’t want to bother having to install, regularly upgrade and support another piece of software;
  • They may overestimate the security vulnerability of such alternative browsers compared to Internet Explorer;
  • The crustier sysadmins may not realize that today’s browsers are not only free for individual users, but also for corporate users–unlike the old Netscape Navigator; and
  • Corporate intranets may be designed for IE, in which case rolling out an alternative browser might cause confusion among less tech-savvy employees.

Microsoft may still have an advantage that could be considered “unfair,” but so what?   Continue reading →