The dual fines imposed by France's CNIL represent a significant escalation in European privacy enforcement, targeting not just traditional tech giants but also emerging e-commerce platforms that violate user consent principles. The €325 million penalty against Google and €150 million fine against Shein signal that European regulators are expanding their enforcement scope beyond Silicon Valley to include global tech companies operating in EU markets.
Google's Gmail Advertising Violations
CNIL found that Google systematically violated privacy laws by showing personalized ads in Gmail and planting tracking cookies during account creation without obtaining proper user consent. The violations center on Google's interpretation of consent requirements under European privacy law.
Specific violations identified:
- Gmail advertising displayed without prior user opt-in consent
- Account creation tracking cookies installed automatically during sign-up
- Personalization defaults enabled without explicit user permission
- Consent mechanisms that didn't meet GDPR standards for valid consent
The €325 million fine represents one of the largest privacy penalties imposed on Google by a single European authority, demonstrating France's willingness to use maximum enforcement powers against tech giants.
Shein's Cookie Tracking Deception
The Chinese-founded fast-fashion retailer faced penalties for more blatant violations - continuing to track French users even after they explicitly opted out of cookies on Shein's website. CNIL investigators found that when users clicked "refuse cookies," Shein's system ignored the choice and continued tracking.
This type of dark pattern - designed to deceive users about privacy choices - represents exactly the behavior European regulators aim to eliminate through aggressive enforcement. The €150 million penalty equals roughly 2% of Shein's 2023 European revenue, meeting GDPR requirements for proportional punishment.
Daily Penalty Pressure
Both companies face €100,000 daily penalties if they fail to implement required changes within six months. This mechanism ensures ongoing pressure for compliance rather than treating fines as a cost of doing business.
Required compliance actions:
- Google must stop displaying Gmail ads without prior opt-in and obtain explicit consent before creating accounts with tracking
- Shein must honor user cookie preferences and implement functional opt-out mechanisms
- Both companies must demonstrate technical compliance with European consent standards
European Regulatory Strategy
These fines represent a coordinated European strategy to establish clear boundaries for tech company behavior in EU markets. France's aggressive enforcement complements broader European initiatives including the Digital Markets Act and Digital Services Act.
Key enforcement principles:
- User consent must be meaningful - not just technically present but genuinely voluntary and informed
- Opt-out mechanisms must work - companies cannot ignore or circumvent user privacy choices
- Penalties must be proportional - fines should reflect company revenue and violation severity
- Global companies face local compliance - market access requires adherence to local privacy standards
Corporate Response Strategies
Google claims it has already made changes including easier opt-outs for personalized ads, while Shein plans to appeal the decision. Both responses reflect typical corporate strategies of implementing minimal changes while challenging penalties through legal appeals.
However, the daily penalty mechanism limits companies' ability to delay compliance through extended legal proceedings, creating immediate pressure for substantive privacy improvements.
Global Privacy Enforcement Trend
The French penalties coincide with increased privacy enforcement worldwide, including the recent $425 million U.S. verdict against Google for similar tracking violations. This convergence suggests that privacy protection is becoming a global regulatory priority rather than just a European concern.
The trend indicates that companies can no longer rely on regulatory arbitrage - operating under different privacy standards in different markets - as enforcement mechanisms strengthen worldwide.