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Report: FTC officials ‘convinced’ Google illegally used dominance to stifle competition, eyes antitrust case

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A Reuters report (via CNBC) from this afternoon claimed top U.S. Federal Trade Commission officials want to bring an antitrust case against Google over numerous complaints about it abusing search dominance to suppress competition in the market.

The FTC announced earlier this year that Washington lawyer Beth Wilkinson is leading its investigation, while FTC Chairman Jon Leibowitz said last month they would reach a decision by 2013. If found guilty, the FTC and Google could enter settlement talks to resolve the matter or duke it out in court.

Reuters cited “three people familiar with the matter,” and it indicated Google could soon face the gristly negotiation process:

Four of the FTC commissioners have become convinced after more than a year of investigation that Google illegally used its dominance of the search market to hurt its rivals, while one commissioner is skeptical, the sources said. All three declined to be named to protect working relationships. Two of the sources said a decision on how to proceed could come in late November or early December. A long list of companies has been complaining to the FTC, arguing that the agency should crack down on Google.

Yelp  and Nextag have both criticized Google at open hearings in Congress, according to Reuters, asserting Google unjustly gives “their web sites low quality rankings in search results to steer Internet users away from their websites and toward Google products that provide similar services.”

Google has continually rebuffed any lawlessness or partial practices, and the search engine’s vice president of engineering, Amit Singhal, even stormed to the Google Public Policy Blog earlier this summer, in an aggressive tactic not usually taken by the Mountain View, Calif.-based company, to address the antitrust accusations in a “claim vs. fact” format.


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It’s official: Google agrees to pay record $22.5M FTC fine in Safari bypass dispute

We reported last week that the Federal Trade Commission voted to fine Google $22.5 million for violating browser security settings in Safari, but now Google has agreed to pay the record-setting amount and finally settle its dispute.

According to the press release (via MarketWatch): 

  • Google to pay $22.5 million to settle FTC dispute
  • SAN FRANCISCO (MarketWatch) — Google Inc. GOOG +0.27% Thursday agreed to pay a $22.5 million penalty to settle a dispute with the U.S. Federal Trade Commission. The FTC said the penalty stems from charges that Google misrepresented users of Apple Inc.’sAAPL +0.13% Safari Web browser after saying it wouldn’t place tracking “cookies” or serve targeted ads to Safari users. The FTC said Google’s actions violated and earlier privacy settlement between the FTC and Google. Google shares were up less than 1% at $643.63 in early trading Thursday.

The allegations against Google began in February, when the search engine and other ad companies were caught bypassing Safari security settings to install tracking cookies on devices and computers without consent.

“The record setting penalty in this matter sends a clear message to all companies under an FTC privacy order,” said FTC Chairman Jon Leibowitz in another presser. “No matter how big or small, all companies must abide by FTC orders against them and keep their privacy promises to consumers, or they will end up paying many times what it would have cost to comply in the first place.”

It is worth noting that the hefty fine roughly equals five hours of revenue for Google based on Q2 2012 sales.

The FTC’s full press release is below.

This article is cross-posted on 9to5Mac.


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Google to pay $22.5M settlement in FTC’s iOS Safari privacy investigation

The last time we updated you on the FTC’s investigation into Google’s method of bypassing the default Safari browser settings on iOS devices, reports claimed the company was facing possible fines that could reach tens of millions. Today, The Wall Street Journal said Google is close to reaching a $22.5 million settlement with the FTC, according to people close to the negotiations:

The fine is expected to be the largest penalty ever levied on a single company by the U.S. Federal Trade Commission. It offers the latest sign of the FTC’s stepped-up approach to policing online privacy violations, coming just six months after The Wall Street Journal reported on Google’s practices.

In recent weeks, the FTC staff and Google have reached a proposed settlement and agreed on a fine, according to several people close to the investigation. The settlement is awaiting approval by FTC commissioners and could still be altered before it becomes public.

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Google facing tens of millions in fines in FTC’s iOS Safari privacy investigation

We knew that Google would likely face fines in the Federal Trade Commission’s investigation into its method of bypassing Apple’s default iOS Safari browser settings. Last month, reports claimed the FTC would make a decision on the fines within 30 days. Today, Reuters reported sources close to the situation have confirmed Google is currently negotiating with the FTC over fines that “could amount to tens of millions of dollars”:

Google Inc. (GOOG) is negotiating with the U.S. Federal Trade Commission over how big a fine it will have to pay for its breach of Apple Inc. (AAPL)’s Safari Internet browser, a person familiar with the matter said. The FTC is preparing to allege that Mountain View, California-based Google deceived consumers and violated terms of a consent decree signed with the commission last year when it planted so-called cookies on Safari, bypassing Apple software’s privacy settings, the person said.

Cross-posted on 9to5Mac.com

Google could soon face big fines over iOS Safari privacy controversy in FTC investigation

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In February, the story broke that Google and other advertising companies were bypassing iOS Safari’s privacy settings and continuing to track users without their consent. Google quickly disabled its code responsible for the tracking after a story from The Wall Street Journal published, and Apple then claimed it was “working to put a stop” to the issue.

Now, a new report from Mercury News claimed the U.S. Federal Trade Commission is considering whether to fine Google over the incident. The decision is expected in the next 30 days:

The Federal Trade Commission is deep into an investigation of Google’s actions in bypassing the default privacy settings of Apple’s (AAPL) Safari browser for Google users, according to sources familiar with ongoing negotiations between the company and the government… Within the next 30 days, the FTC could order the Mountain View search giant to pay an even larger fine in the Safari case than the penalty the Federal Communications Commission hit Google with Friday, say the sources, who spoke on condition of anonymity.

The report is referring to Google being recently fined $25,000 by the FCC after it allegedly “deliberately impeded and delayed” an investigation related to Street View cars. The heart of the Safari bypassing investigation is whether the company is violating a previous privacy agreement made with the FTC following controversy over the failed “Buzz” service. The report claimed Google could face up to $16,000 per violation per day for violating the agreement. Google said to Mercury News today it would “cooperate with any officials who have questions” and explained making its +1 compatible on mobile Safari created the issue:


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Google’s ‘Showy’ turns devices into a remote control for TV and more

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When Google registered GoogleShowy.com last month, we could only speculate what the company was planning for the domain name. The good news is that a new trademark filing (via Fusible) gives us more details about the yet-to-be announced “Showy.” According to the trademark application submitted earlier this month, Showy will consist of the following:

“Downloadable software which allows users to use their computer, tablet device, or mobile phone as a remote control to operate video display devices and televisions; and downloadable software which allows users to remotely control the content on internet-connected digital signage.”

Fusible mentioned that PatentlyApple covered a Google-filed patent application in February that detailed a voice-powered Google TV remote. Unfortunately, the filing did not offer any other details. Filings with the Federal Trade Commission last month proved Google is also working on a “home-entertainment system” for wirelessly streaming music. It is possible that this could be a new remote control solution for GoogleTV, or something more. We will keep you posted when we hear more about Showy.

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Report: Google plans to reinvent search by understanding words

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Google is reinventing its Web-search technique with direct information for queries to better maintain the majority market share.

The Wall Street Journal said Google aims to replace some Web links with summarized answers and facts. The search formula transition will roll out over the next few months as the search engine begins to merge relevant results with semantic search, which attempts to understand the meaning of words versus keyword identification. One source said the change could influence 10 percent to 20 percent of all search queries.

Under the new strategy, a search for “Mount Everest” will display key attributes, such as the mountain’s location, altitude, or geographical history, aggregated from Google-indexed websites. Longer queries might uncover a real answer instead of links to websites. For example, the question “What are the 10 largest mountains in the United States?” would subsequently reveal a list of mountains and not ambiguous links to various state parks or hikers’ fan pages.

Google’s top executive Amit Singhal told WSJ that the new search results are the product of hundreds of millions of “entities” stored in a database. The company’s Metaweb team of 50 engineers painstakingly gathered particulars on people, places, and things over the last two years to build an immense collection for associating different words through semantic search.

More information is available below.


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US Federal Trade Commission subpoena Apple in Google antitrust probe over iPhone search

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According to a report from Bloomberg (via AllThingsD), the U.S. Federal Trade Commission subpoenaed Apple as part of its antitrust investigation of Google. There are not many details currently, but the report claimed the FTC is interested in Apple’s agreement with the company to use Google as its primary default search engine on iOS devices.

The agency’s request for documents includes the agreements that made Google the preferred search engine on Apple’s mobile devices, said the people, who weren’t authorized to speak publicly and declined to be identified. Google rivals such as Microsoft Corp. (MSFT) have criticized these agreements as anticompetitive.


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FTC criticizes poor privacy disclosures in apps for kids, takes aim at Android apps’ permissions rate

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The Federal Trade Commission released a report today (PDF) based on a survey that found apps for children do not fully disclose the types of data collected nor do they adequately educate parents about data harvesting, and the report’s spotlight is set on both Android Marketplace and the Apple App Store.

The consumer protection agency scrutinized privacy policies, recommended each developer give comprehensible disclosures on how data is accrued and shared, including whether children’s data is linked to social network apps, and it even mentioned conducting a six-month review on disclosures and using enforcement if needed. The report focused on the two main app stores themselves and requested more be done to tell children and their parents about privacy concerns…


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Lawmakers to Google: ‘We want to make sure’ unified policy protects consumer privacy, calls for FCC probe

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Rep. Edward Markey, a prominent U.S. lawmaker on privacy issues, announced earlier this week he was concerned with Google’s new privacy policy, and he further addressed his worries on Thursday by calling for a probe into Google’s handling of consumer data.

Google’s offerings include its globally popular search engine, Gmail, YouTube, Search plus Your World, Google+, and more, which are streamlined under the merging of 60 privacy policies intended to “mean a simpler, more intuitive Google experience.” The unified policy’s primary objective is to assemble and integrate information from across Google’s products and services as a single throng of data that the Mountain View, Calif.-based Company can use to target advertising dollars.

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Markey released a Jan. 26 statement contending that the new policy changes should allot premium consumer control, and in the meantime, he plans to ask the Federal Communications Commission to investigate if such options exists for Google users:

“All consumers should have the right to say no to sharing of their personal information, particularly when young people are involved.  Google’s new privacy policy should enable consumers to opt-out if they don’t want their use of YouTube to morph into YouTrack.  Consumers – not corporations – should have control over their own personal information, especially for children and teens. I plan to ask the Federal Trade Commission whether Google’s planned changes to its privacy policy violate Google’s recent settlement with the agency.”

More information is available below.


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Google protests against US anti-piracy bills and issues campaign promoting online privacy

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Google Inc., announced it will insert a link and censor its logo on the search engine’s home page tomorrow to emphasize its opposition to U.S. anti-piracy bills in conjunction to rolling out a new campaign that promotes online privacy awareness.

Business Week reported the globally popular search engine is among many Internet companies that criticize the measures, claiming the bills could encourage online censorship and stunt the growth of the American technology industry.

The movie and music industries have experienced huge sale declines in recent years and subsequently support the Stop Online Piracy Act (SOPA) in the House and the Protect IP Act (PIPA) in the Senate.

According to the Recording Industry Association of America, music sales in the U.S. have dropped 47 percent, from $14.6 billion to $7.7 billion, since peer-to-peer file sharing emerged in 1999. Moreover, the Motion Picture Association of America released an info graphic (PDF) last year that claimed 29 million American adults by 2010 had downloaded illegal copies of film or television shows.

However, both bills —if passed— would be a means to prevent the sale of illegal content or counterfeit goods by websites operating outside United States borders…


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Report: FTC includes social network Google+ in antitrust probe; EPIC urges FTC to watch search changes

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The U.S. Federal Trade Commission is expanding its antitrust probe of Google to include the inspection of social network service Google+, according to Bloomberg.

The publication sourced two people “familiar with the situation,” and cited “competition issues raised by Google+” as the primary aspect of the FTC’s investigation into whether the globally popular search engine gives preference to its own services. The FTC is also inquiring whether such practices violate antitrust laws, according to Bloomberg, who could not identify its sources due to the investigation’s nonpublic status.

The Mountain View, Calif.-based company rolled out “Search, Plus Your World” to its search engine Jan. 10 and dubbed the revision a “personal results” feature that displays Google+ photographs, news and comments when user’s conduct Web searches. The Electronic Privacy Information Center promptly called upon the FTC on Jan. 12 to investigate the recent search changes in a letter posted on its website…


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FTC includes Android in anti-trust probe of Google

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The Federal Trade Commission began an anti-trust probe of various Google services six weeks ago after serving the company with a number of “broad subpoenas”. Today, sources familiar with the proceedings report the probe is now extending to Android and Google’s endeavours in the mobile space.

The WSJ explains:

Six weeks after serving Google with broad subpoenas, FTC lawyers, in conjunction with several state attorneys general, have been asking whether Google prevents smartphone manufacturers that use its Android operating system from using competitors’ services, these people said.

They also have inquired whether Google grants preferential placement on its website to its own products, such as Google’s “Places” business listings, its “Shopping results” or Google Finance services above most other results.

This wouldn’t be the first time government has targeted a technology company expanding into areas other than what they’ve been known for, and it certainly wont be the last. Despite that, Google doesn’t seem to be worried… a Google spokesperson had this to say about the probe:

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