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How different is this to, eg, the Google developer program, in which I can create a new OAuth client for Google users?

OAuth2, to be more precise, is a protocol which can be used both for authentication (verifying the user) and authorization (accessing resources on behalf of that user).

Most people in CIAM (customer identity, individuals owing their account instead of representing a company) only interact with OAuth client for authentication. They do not give access of their google account to some THIRD PARTY COMPANY.

Sure they do. All the time! For example, if you want to use a script in Google Docs these days, you have to go through an oauth flow to give that script's app permission to do certain actions in your Docs.

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