Increasing regulation, consumer demand, and the influence of big tech companies have all required mobile developers and web publishers to prioritize and adopt data privacy compliance and consent management practices. The real driver, however, is your company’s bottom line.
The rise of data protection laws and the requirements they set out mean that consumers are increasingly aware that if they’re not paying to use a product, their data is the real price.
As they’ve become more informed about how their data is collected and used by developers and publishers, consumers are more inclined to walk away from businesses with data privacy practices they don’t trust, understand, or agree with.
The mobile app, game, and web publishing industries have already had to adjust to how they manage consumers’ data privacy expectations over the past few years while also figuring out compliance requirements for new data privacy regulations. There’s no sign that this will change any time soon. Let’s take a look at the challenges developers and publishers are currently facing.
What is data privacy?
Data privacy involves the processes around the collection and use of digital personal information, including data that can be used to identify an individual, and the need to do so responsibly.
For companies, it relates to the policies and processes that enable users to control how their information is collected, used, processed, and shared in line with relevant data privacy laws. It also creates a framework for how companies can access and use personal data, including sharing and transfers to third parties or other countries.
Data privacy for app, game, and web publishers
App, game, and web publishers have to comply with major data privacy regulations like the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) the same as other companies that process personal data do.
The nature of the data collected from mobile app users can be sensitive in nature, including health or financial information. This means app, game, and web publishers must ensure high levels of security and transparency around their data collection and usage practices. When personal data is categorized as sensitive by privacy regulations, extra restrictions on usage and security requirements are levied on entities accessing it.
Biggest challenges for managing sensitive data
Data management presents a variety of complexities for developers and publishers that have to balance user experience, technical performance, data privacy requirements, and monetization demands.
1. Privacy-first mobile app marketing strategies make consent critical
Obtaining user consent for collecting personal data in apps and games has evolved from a mere formality to a central pillar of development and marketing operations.
This is a result of increasing global awareness about the control and protection of data, as well as the growing coverage of protections from privacy regulations. On top of this, pressure from business sources like premium advertisers and platforms like Google is increasing. These players now insist on proof of consent to enable access to high value inventory or their tools, making consent a direct driver of monetization and ongoing revenue.
Privacy by design is especially important in the mobile context, as UI restrictions and user impatience require a seamless consent process to ensure a positive experience. This approach will not only help you to attract and grow a dedicated audience to drive revenue generation, but also help you to avoid regulatory violations while meeting critical partner requirements.
The Digital Markets Act, Google Consent Mode, and consent signaling requirements
The Digital Markets Act (DMA) also brings major changes to European digital markets. It places new data privacy responsibilities on seven designated gatekeeper companies — Alphabet, Amazon, Apple, Booking.com, ByteDance, Meta, and Microsoft — which have billions of mobile users among them.
To achieve DMA compliance, these companies must ensure that third-party advertisers and developers using their platforms also get valid user consent and signal it to the gatekeepers. Google’s updated EU user consent policy and Google Consent Mode v2 are great examples of this.
Consent Mode introduces various consent signaling parameters that control whether user data can be processed via Google tags and used for advertising or personalization. This requires using a Google-certified consent management platform (CMP) into which Consent Mode v2 is integrated. Consent information is collected from users via the CMP, and communicated to Google services via Consent Mode.
Learn more: Usercentrics CMP supports Google Consent Mode V2
The TCF 2.2, Google, and publishers
The IAB’s latest version of the Transparency and Consent Framework, the TCF v2.2, launched in May 2023 and brought a number of changes to mobile advertising.
The update excludes “legitimate interest” as a legal basis for data processing. This means it’s now mandatory for app publishers to capture consent for both cookie use and mobile identifiers in order to deliver personalized and non-personalized ads.
Google now also requires publishers using its products — including Google AdSense, Ad Manager, or AdMob — to use a Google-certified CMP that integrates with TCF v2.2 when serving ads to users in the EU, EEA, UK, and Switzerland.
2. Cross-device and cross-platform tracking for compliance and user experience
Users want seamless, personalized online experiences while also maintaining total control over the data they share and what companies are allowed to do with that data.
One of the biggest challenges here is that it’s increasingly common for users to have multiple devices, engage with apps across all of them, and want these platforms to “talk” to one another so that they don’t have to provide their information or consent multiple times. This also has to be handled securely.
Managing data privacy and consent across devices becomes more complex as more platforms are introduced. Especially since operating systems can change and considering that all of our apps come from different publishers with different technical capabilities and different levels of dedication to data privacy.
App publishers often need to develop sophisticated mechanisms to track users across devices and recognize their consent preferences on all platforms, all while respecting user privacy and the requirements of one or more data privacy regulations.
Under many privacy laws, apps also need to enable users to change or withdraw previously given consent at any point, which must immediately be respected across devices and apps, including by third parties processing data for publishers.
3. Artificial intelligence introduces another layer of complexity
Artificial intelligence (AI) is becoming integral to mobile apps, and the resulting increase in automated decision-making and targeted profiling is raising privacy concerns.
As a result, some data privacy laws require explicit user consent or clear opt-out options around automated decision-making and disallow it to be used on children’s or sensitive personal data.
The EU AI Act, which came into force in June 2024, is an example of this type of regulation. It introduces comprehensive rules for AI usage in the EU and applies to the providers and developers of AI systems that are marketed in the region. It aims to safeguard consumers while still encouraging innovation.
The AI Act categorizes different uses and risk levels posed by AI and prohibits AI practices that pose unacceptable risks — like manipulative techniques or exploiting vulnerable groups — and requires that high-risk applications be registered, documented, and submitted for regular compliance checks.
As a result of the AI Act and other data privacy regulations, publishers must ensure that their EU-based users are fully informed and have control over AI-driven processes in their applications.
This includes communicating transparently with users to inform them whether AI tools or algorithms are being used, what the purposes are, what data they use, the decisions that they might drive, and who might have access to the resulting information.
Publishers must also give users the option to opt out of all AI decision-making, especially when privacy regulations require an opt-in model for the use of AI tools.
4. Tighter controls over third-party data sharing
Historically, publishers could collect extensive user information and engage in data selling without obtaining consent from data subjects. Users typically weren’t aware of who had access to the information that was collected or how it was used.
Even now, although users see notices that request consent to share their information with “trusted partners,” it’s often unclear who these partners are and how they might use the information in question.
For example, some companies have hundreds of third-party partners and additional parties are sometimes nested in services like marketing cookies. As a result, they can only be uncovered by deep scanning, which makes them virtually invisible to the average user.
To comply with regulations like the GDPR and CCPA, publishers must now ensure that they have the necessary data processing agreements (DPAs) in place with any third parties that will be able to access the data collected by publishers.
Under most data privacy laws, the controller — the company arranging for the data processing — is responsible for the actions of third-party processors, hence the importance of DPAs to provide a framework for how processing and data protection must be conducted.
As privacy regulations tighten up globally, app and game developers and web publishers will need to become far more careful and strategic about managing consent, but also about which third parties, including advertisers, have access to their users’ data. In the EU and US, authorities have explicitly called out apps as a market that would be experiencing an increase in regulatory scrutiny.
The difficulty for publishers and developers is that these detailed consent requests may deter users from agreeing to tracking, especially if they have to scroll through a long list of companies they’ve never heard of but will then have access to their data.
One solution is to put more rigorous vetting practices in place for third-party partners and advertisers. This might include evaluating their compliance with various regulations and ensuring that their consent policies and mechanisms are detailed enough to meet the “informed” requirement of many laws’ conditions for valid consent.
5. Mobile app privacy compliance goes global
Gartner has predicted that 75% of the world’s population will have data privacy protections by the end of 2024. Data privacy is no longer a niche crusade by a few organizations or governments. Some regions, like in the EU, have multiple laws to protect consumers and their right to privacy.
Data privacy laws usually protect residents of the region where they’re enacted and are extraterritorial. For example, the GDPR puts requirements in place for the handling of EU residents’ data for all businesses, regardless of whether the business is based in the region.
This global reach has enormous potential implications for mobile apps and games. Users can be located anywhere, so developers may need to comply with multiple regulations to stay on the right side of the law.
While tools like geolocation can help developers to display the correct information and consent options to users based on their location, it’s still potentially a piecemeal approach. Robust and flexible data privacy frameworks that can be adapted to regional, national, or industry-specific laws and policies therefore become essential.
These frameworks enable publishers to focus on their core business while being able to adapt their data privacy and consent operations as laws change. This is especially crucial for smaller businesses, which may lack the significant targeted technical or legal expertise required for constantly maintaining data privacy compliance.
6. User tracking and profiling for personalization
Publishers and developers that want to personalize in-app, in-game, and web experiences will need to leverage user tracking and profiling. This involves collecting data directly from your users, including online behaviors and preferences, to ensure the content they see is tailored to their interests.
However, major data privacy laws significantly impact how you’re able to do this while still respecting user privacy. Here, techniques like behavioral fingerprinting and progressive profiling can help you identify browsing patterns and collect data incrementally to gain valuable insights while adhering to these regulations.
7. Adhering to the Children’s Online Privacy Protection Act (COPPA)
Children are an especially vulnerable population, making their data more sensitive and requiring it to have greater protection than the average app, game, or website user. Pretty much all data privacy laws categorize children’s data as sensitive by default and require prior consent from a parent or guardian before it can be collected.
The age range that defines a child varies by law, so under some laws consent must be obtained by the young person rather than a parent or guardian.
This adds a layer of complexity for developers and publishers, who must obtain verifiable parental consent under the US federal law COPPA when collecting personal information from children under the age of 13.
Some recent enforcement actions highlight the importance of compliance with the Act:
- Microsoft: In June 2023, Microsoft was fined USD 20 million for collecting personal information — including names, email addresses, and phone numbers — from children who signed up for Xbox accounts without parental consent.
- ByteDance: The company behind TikTok has been subjected to multiple investigations for collecting biometric data from users without verifiable parental consent.
- Snap Inc: Snapchat has been scrutinized for its data collection practices related to children. The Federal Trade Commission (FTC) in the US investigated the platform for failing to inform parents about the data it collected from children under 13.
- Meta: The FTC has conducted several investigations into Facebook and Instagram for collecting personal information from children without parental consent after allowing children under the age of 13 to create accounts on the platforms.
Biggest data privacy issues to watch out for
Developers and publishers working in the mobile space face some critical data privacy challenges. However, with the right knowledge and tools, you can gather and use data in a way that increases trust with consumers and positively impacts your bottom line.
Privacy-led marketing strategies also enable obtaining high quality data directly from users, helping to ensure consent and build more desired and personalized experiences that boost engagement and revenue long-term.
Staying compliant with privacy laws
Failure to stay up to date with data protection laws’ requirements and security best practices can lead to data breaches and leaks, which can result in lawsuits, hefty financial penalties, and significant damage to brand reputation.
In addition to these direct costs, it’s likely that your company will incur indirect costs such as a decreased revenue due to loss of customer trust and potential business opportunities.
Here are some of the global data privacy laws that app, game, and website developers and publishers should keep an eye on and maintain compliance with:
- General Data Protection Regulation (GDPR): Requires companies that collect and handle the data of EU residents to obtain users’ explicit, informed consent before any data collection takes place.
- ePrivacy Directive (ePD): Complements the GDPR and regulates the use of cookies and tracking technologies as well as the confidentiality of electronic communications.
- California Privacy Rights Act (CPRA): Expanding and amending the CCPA, this protects the personal data of California residents by requiring companies to disclose data collection practices, and provide opt-out opportunities, including a “Do Not Sell Or Share My Personal Information” link.
- Personal Information Protection and Electronic Documents Act (PIPEDA): Governs how private companies can collect, use, and disclose Canadian residents’ personal information.
- Washington My Health My Data Act: Protects highly sensitive health data, making it critical for apps that collect health, fitness, and wellness information.
- Protection of Personal Information Act (POPIA): Regulates the processing of personal information by public and private bodies in South Africa.
- Lei Geral de Proteção de Dados (LGPD) : Safeguards the personal information of Brazilian residents by regulating how it may be collected and processed.
Keeping track of changes to these and other data privacy laws can be difficult and expensive for teams that don’t have the in-house legal and technical expertise required to achieve and maintain compliance.
Using a CMP like Usercentrics CMP can help developers and publishers achieve and maintain privacy compliance by providing tools to manage user consent in a way that aligns with the latest requirements as they come into effect. Displaying a consent banner also demonstrates respect for users’ data privacy to build trust.
Visibility over collection, usage, and sharing of data
Developers and publishers that want to achieve and maintain compliance with data privacy laws need to create visibility around how an app, game, or web platform collects, uses, and shares data.
This can be done by providing users with detailed information about your data collection and data handling practices, which should be communicated via consent notices within your application or game, or on your website.
Access control to personal data
Proper access controls are necessary to protect both employee and consumer data within apps, games, and web platforms.
To adhere to the GDPR and other data privacy laws, companies must implement controls to limit access to authorized personnel only. This includes using role-based access controls and multi-factor authentication, as well as conducting regular access reviews to maintain data security. Such monitoring and technical controls also need to include third parties that may access the data.
Securing data across multiple devices
The rise of remote work has presented some challenges for securing data. Employees now often access company platforms from various devices, increasing the risk of data breaches.
To reduce the risk of leaks and ensure that data subjects’ personal information is safeguarded across all access points, developers and publishers must implement additional security measures, like end-point security solutions and robust monitoring.
Best practices for data privacy in apps, games and web publishers
There are a few key best practices that developers and publishers should follow to ensure that their personal data collection and access practices meet the requirements of data privacy laws.
- Data minimization: Collect only the data that’s necessary for your operations and ensure it’s used for specified and legitimate purposes.
- User consent management: Use a CMP to handle user consent efficiently and reliably with automated functionality to remain compliant with evolving privacy laws.
- Third-party management: Ensure that third-party vendors comply with your internal data privacy policies and external regulations.
- Data encryption: Encrypt data to protect it from unauthorized access and breaches.
- Security audits: Conduct regular audits to identify and remedy vulnerabilities with your app, game, or web platform.
- Regular software updates: Keep all software up to date with the latest security patches to protect it against new threats.
- Data breach response plan: Develop and maintain a data breach response plan to enable speedy and effective response to data leaks.
Key to data privacy for apps, games, and web publishers
Data privacy regulations, user expectations, and business requirements have made user consent a necessity.
Savvy publishers understand that embracing data privacy and consent management can in turn drive acquisition of quality user data, downloads, long-term customer loyalty, monetization strategies, and revenue growth.
Developers and publishers that adopt a privacy-first approach when building their apps, games, and web platforms are protecting their operations from fines and other penalties, now and in the future.
What’s more, they understand that this approach can help them streamline operations so they can easily adapt to frequent changes in the technical and legal landscape and continue to generate revenue through advertising, subscriptions, and in-app purchases.
To take a privacy-first approach to collecting and managing user data, turn to Usercentrics CMP. It’s a flexible and scalable platform that helps you manage user consent across websites, apps, and mobile games so you can achieve and maintain data privacy compliance.
