I assume you are making a fine distinction between straight handing down user identifying private information, and providing special access to targeted users that will only hit the advertiser in full as they hit the ad.

Technically and legally both are different, but I still see both as funnelling data to advertisers.

Excuse me, but one of those things is actually providing data to advertisers, and one of them clearly, legally, and functionally is _not._ You don’t get your own set of facts just because you irrationally hate Google.