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When I first saw this I was really confused about what to do as it seemed I was turning privacy off by turning these off. The use of the term privacy with this feature is confusing

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As someone who works in adte h my opinion this was started by Apple's 'privacy' features which just means you opt in to apple tracking everything instead of other companies. The issue I have there is that Apple is the company that knows your real name. They used this to become a late monopoly in iOS advertising.

Google took note and is now building and offering more "privacy tools".

Exactly this is an excuse to centralize more power to Google. Of course they’d rather not take on the work, but if regulators force them to end up in a position where they control even more data? Well, they are begrudgingly happy to oblige.

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