Is this the case only on the site it is configured in this manner? Or are you saying that Google analytics data is not collected or used on the site with this setting disabled, but that data from the site with the setting disabled may still be used for advertising purposes on other sites?
Sorry if my phrasing is strained, as I was trying to be precise but it may have impacted readability.
so Google wants Google Analytics to never be threatened for marketshare.
A great sign that the free analytics service offered by the advertising company should not be trusted.