Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home CRM Systems Customer Service Business Intelligence Sales & Marketing More Topics...
Business Briefing
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Judge OKs $22.5 Million FTC Fine on Google
Judge OKs $22.5 Million FTC Fine on Google

By Adam Dickter
November 20, 2012 11:14AM

Bookmark and Share
"I think this is too small to change behavior," said analyst Rob Enderle of the FTC's $22.5 million privacy fine against Google. "Amounts like this are easily fit in the cost of doing business for a company of this size. It likely needs to be two magnitudes bigger to convince the company to change behavior." A judge has OK'd the fine against Google.
 

Related Topics

Google
Privacy
Safari
Cookies
Apple



A federal judge has agreed to a $22.5 million settlement in the Federal Trade Commission's case against Google for tinkering with Apple's Safari browser to make it easier to track users' activity via mobile ads.

The fine is the toughest ever leveled by the government watchdog agency, but not the first slap against the Mountain View, Calif-based technology giant.

The two sides agreed to the settlement in August, after an investigation into code that allowed Google to bypass Apple's privacy settings on its browser for the iPhone and iPad. This was accomplished by adding +1 Google -- recommendations to ads produced by Google's DoubleClick ad agency, which cleverly allowed Safari to accept cookies, snippets of data. The code was discovered by a Stanford University researcher who reported his findings to The Wall Street Journal.

'News to Us'

Google said it didn't know its code was having that effect on computers and immediately discontinued the code after the Journal's report.

Members of Congress demanded an investigation, and the FTC said Google had violated an October 2011 settlement in which it promised to behave itself on privacy issues. The tracking code was a misrepresentation to consumers regarding Google's privacy policies, the FTC said.

""The record-setting penalty in this matter sends a clear message to all companies under an FTC privacy order," said Jon Leibowitz, chairman of the FTC. "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."

The fine is a huge jump from the $25,000 fine leveled by the FTC just last April because of personal data obtained by the company's Street View cars, which capture images for Google Maps, obtained from Wi-Fi routers.

But some say the fine is still too paltry for Google to feel it. Google earns $22.5 million about every four hours, according to an estimate by the group Consumer Watchdog.

Europe Is Tougher

"I think this is too small to change behavior," said consultant Rob Enderle of the Enderle Group. "Amounts like this are easily fit in the cost of doing business for a company of this size. It likely needs to be two magnitudes bigger to convince the company to change behavior. Fines this low are little more than a small annoyance."

Enderle noted that it took a fine of $1.44 billion against software giant Microsoft leveled by the European Union before the company changed its licensing practices.

"The EU has been far more effective than the U.S. of late addressing bad corporate behavior," Enderle told us.

In addition to the fine, the order also requires Google to disable all the tracking cookies it had said it would not place on consumers' computers.
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Business Briefing
1.   Investor Wants EMC To Spin Off VMware
2.   Schools Buy Million Chromebooks in Q2
3.   Verizon Launches Rewards Program
4.   IRS: Lerner's Hard Drive Destroyed
5.   CEO Pay Scales Can Be Perplexing


advertisement
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
Backlash Stirs Against H-1B Visas
Debate over foreign workers continues.
Average Rating:
Radical.FM's Freemium Biz Model
Online radio startup asks for donations.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
34 European Banks Hit by Android-Skirting Malware
Criminals have been finding gaping holes in Android-based two-factor authentication systems that banks around the world are using. The result: 34 banks in four European countries have been hit.
 
New Web Tracking Technologies Defeat Privacy Protections
Recently developed Web tracking tools are able to circumvent even the best privacy defenses, according to a new study by researchers at Princeton and the University of Leuven in Belgium.
 
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
 

Mobile Technology Spotlight
Nvidia Revamps Shield as an Android Game Tablet
Going after hardcore PC gamers, Nvidia is releasing a gaming-focused tablet that works with a controller. The Shield Tablet follows the Shield Portable gaming handheld Nvidia released last year.
 
Apple Patent for Smart Watch Comes to Light
Does a new smart watch patent issued to Apple provide a preview of the expected wearable from the tech giant? Some Apple-watchers are parsing the patent for signs of the coming product.
 
Will iPhone 6 Cannibalize Apple's Tablet Sales?
Could Apple’s iPhone 6 -- it’s so-called super-size phone due to hit store shelves this fall -- come back to haunt the smartphone maker? Some observers say yes; others say preposterous.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Business Intelligence | Sales & Marketing | Contact Centers | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.