Startup accuses Google of 'predatory conduct' for blocking API access
What's the story
London-based Gener8 has accused Google of "predatory conduct" following the tech giant's decision to revoke its access to the Gmail API.
The start-up, which enables users to manage and monetize their data collected by platforms like Gmail, heavily relies on this API for its operations.
Gener8's app displays the information that companies hold about users and offers them two choices: block tracking from third-party firms and remove their ads from browsers or allow Gener8 to anonymize their data for rewards.
Business impact
Gener8's growth and Google's intervention
Since its inception in 2018, Gener8 has secured over one million users and raised £9 million in funding.
In July, the startup was valued at £39 million and projected to become a unicorn within this decade.
The Gmail API allows Gener8 to access electronic receipts and sell anonymized transaction data derived from them.
Google approved the application in January 2023. As per the startup, it explained Google the plan to commercialise the data when it requested access to Gmail API.
CEO reaction
CEO's response to Google's decision
Gener8's founder and CEO, Sam Jones, has criticized Google's decision as "a clear attempt to suppress a disruptive challenger."
Jones suspects that the real motive behind Google's decision is a regulatory loophole.
He pointed out that under the EU's Digital Markets Act (DMA), services like Search and the Play Store have a Data Portability API allowing users to transfer their data to Gener8.
However, Gmail does not fall within the DMA's scope and therefore lacks similar regulatory oversight.
Regulatory expectations
Gener8's future plans and regulatory hopes
Gener8 intends to challenge Google's decision, warning that other data businesses could also be adversely affected by such actions.
The startup is hopeful that Gmail will soon be subject to stricter DMA regulations and believes that cutting off access to the Gmail API could violate GDPR rights to data portability.
As the UK is currently developing a DMA equivalent, Gener8 anticipates these rules will impose stricter obligations on data portability.