Europe Investigating Google’s Privacy Policy

France’s data protection watchdog is questioning the legality and fairness of Google’s new privacy policy, which it said breached European laws.

The CNIL regulator told Google in a letter dated February 27 it would lead a European-wide investigation of the web search giant’s latest policy and would send it questions by mid-March.

Google said in January it was simplifying its privacy policy, consolidating 60 guidelines into a single one that will apply for all its services, including YouTube, Gmail and its social network Google+.

The U.S. Internet company also said it will pool data it collects on individual users across its services, allowing it to better tailor search results and improve service.

Users cannot opt out of the new policy if they want to continue using Google’s services.

“The CNIL and EU data authorities are deeply concerned about the combination of personal data across services: they have strong doubts about the lawfulness and fairness of such processing, and its compliance with European data protection legislation,” the French regulator wrote to Google.

Google plans to put the changes into effect March 1 and has rebuffed two requests from European regulators for a delay.

The tussle over data privacy comes at a delicate time for Google, whose business model is based on giving away free search, email, and other services while making money by selling user-targeted advertising.

It is already being investigated by the EU’s competition authority and the U.S. Federal Trade Commission over how it ranks search results and whether it favors its own products over rival services.

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Google Goes Pay To Track

Amid widespread concern about its new privacy policies, Google is now facing additional criticism over a deal to offer users Amazon gift certificates if they open their Web movements to the company in a program called Screenwise.

Google says the program launched “near the beginning of the year,” but the company’s low-key offer was disclosed Tuesday night on the blog Search Engine Land.

Google is asking users to add an extension to the Chrome browser that will share their Web-browsing activity with the company. In exchange, users will receive a $5 Amazon gift when they sign up and additional $5 gift card values for every three months they continue to share. (Amazon is not a partner in the project.) Users must be over age 13, and minors will need parental consent to participate. The tracking extension can be turned off at any time, allowing participants to temporarily close their metaphorical shades on Google.

The company says the program will help it “improve Google products and services and make a better online experience for everyone.”

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Google Defends New Privacy Policy

In a letter sent to eight members of Congress, Google yesterday defended its decision to consolidate its privacy policies and users’ personal information.

The 13-page letter explains Google’s decision to change its privacy policies and answers specific questions from the legislators. In sum, Google contended that its approach to privacy remains the same, that users still have control over how they use the company’s various online services, and that private information stays private.

“Some have expressed concern about whether consumer can opt out of ourupdated privacy policy,” wrote Pablo Chavez, Google’s director of public policy, in the letter.

“We understand the question at the heart of this concern. We believe the relevant issue is whether users have choices about how their data is collected and used. Google’s privacy policy – like that of other companies – is a document that applies to all consumers using our products and services. However, we have built meaningful privacy controls into our products, and we are committed to continue offering those choices in the future,” he added.

Google stirred up something of a privacy firestorm last week when company executives disclosed plans to rewrite privacy policies and to meld user information across its various products and services.

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Will eBay Cozy Up With Facebook?

EBay Inc is attempting to strengthen its relationship with social network leader Facebook at a developer conference this week, a person familiar with the e-commerce company said on Tuesday.

EBay will also debut a new online identification service for shoppers named PayPal Access, the source added.

The company expects almost 4,000 people to attend its X.commerce conference in San Francisco on October 12, 13 and 14. The event marks the official launch of the company’s new X.commerce division, which will target e-commerce software developers.

EBay is trying to encourage outside developers to create applications for its e-commerce platforms and is making a particularly strong push in mobile commerce.

At the end of September, Katie Mitic, head of Platform and Mobile Marketing at Facebook, joined eBay’s board of directors, sparking speculation that the two companies were working on new partnerships.

Mitic is scheduled to be one of the keynote speakers at the X.commerce conference on Wednesday. Facebook Platform, which Mitic helps run, is the company’s developer unit, so any new partnership will focus on this area, the person said on condition of anonymity because the plans aren’t public yet.

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Did Google Increase Microsoft’s Ad Rates?

Google might have increased Microsoft’s ad rates 50 fold, a Bloomberg report says.

Someone familiar with the matter told Bloomberg that the US Federal Trade Commission (FTC) is looking into the rate increase.

It will also be looking into other allegations against Google about advertising as a result of complaints from Microsoft.

This is part of a larger antitrust probe into Google that began earlier this year, the source told Bloomberg.

An antitrust lawyer at Doyle Barlow & Mazard PLLC in Washington, Andre Barlow, told Bloomberg that, if true, the Microsoft allegations could be used to help the FTC build a case showing that Google has abused its power as the owner of the world’s most popular search engine, violating the Sherman Act and other antitrust laws.

He said, “A lot of this conduct, when put together with a firm with market power, could be viewed as a violation” of antitrust laws.

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Google+ Is A No Go In China

The United States biggest creditor (China) has taken steps to stop Google+ right after it was debuted to the world yesterday. While some people may claim it is all part of a communist plot to crack down on dissent; this time it may not be the case this go round.

For those of you, who are late to the game, be advised that Google+ is the firm that tried to introduce social networking to China. Again social networking is thought to be a threat for oppressive governments because it allows its populations to share information and gossip. Therefore, it would seem apparent that the Chinese might be a little cautious about allowing a social networking environment in the country.

That said, it was revealed by Microsoft that cloud based operations in other countries, which are run by American companies fall under the jurisdiction of the US Patriot Act. Therefore, we (US) could technically spy on anyone in China with the proper paperwork such as a court order and the company is required is to hand over information.

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Twitter Toying With Money Making Ideas

Twitter is considering the option of placing ads into the live stream of messages, according to the Financial Times. The addition of “promoted tweets” — a more palatable way to say advertising — within the live Twitter stream is bound to turn off many users, at the same time as it attracts businesses looking to reach some of the company’s 300 million users.

Twitter’s executives have been in discussions with strategists at the Cannes Lions International Advertising Festival in France this week to find a way to increase revenues, which disproportionately trail those of social media companies such as Facebook.

Twitter is expected to generate revenues of about $100 million this year. Facebook, by contrast, reaps $3.5 billion from display advertising, according to a forecast by Enders Analysis.

A few other ideas leaked out of these meetings. One was that Twitter would offer mass coupon deals, which hold potential given the real-time nature of interacting on Twitter. A brand profile, which would allow advertisers to pre-schedule their company’s Tweets, is also being considered.

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Facebook Is Display Advertising King

Facebook’s U.S. advertising revenue will reach roughly $2.2 billion in 2011, toppling Yahoo Inc to collect the biggest portion of online display advertising dollars, according to a new study.

Facebook’s U.S. advertising revenue will give it a 17.7 percent share of the market for graphical display ads that appear on websites, according to a report released on Monday by research firm eMarketer.

Last year Facebook garnered 12.2 percent share of the U.S. market.

The figures highlights the growing clout of Facebook, the world’s No.1 Internet social network. It has seen its valuation soar to roughly $80 billion in recent transactions for its shares on the private markets as some investors anticipate it could have an initial public offering next year.

While Facebook has grabbed the top ranking, eMarketer analyst David Hallerman said the overall market for display ads, which include banner ads, video ads and Web page sponsorships, is growing robustly enough that it is benefiting numerous companies.

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Google Facing DOJ Probe

Google is under investigation by the U.S. Department of Justice concerning practices within its advertising program, and has set aside $500 million for a potential resolution fund, the company said in a regulatory filing on Tuesday.

In its quarterly report filed with the U.S. Securities and Exchange Commission, Google said that in May it accrued $500 million for the three-month period ended March 31, 2011 in connection “with a potential resolution of an investigation by the United States Department of Justice into the use of Google advertising by certain advertisers”.

Although it cannot predict the ultimate outcome of the matter, Google said that it believes that it will not have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows.

The company did not explain why the charge had been taken retrospectively on its first quarter earnings. It is also not clear to whom Google would have to make the payment in the event of settlement.

Google declined to comment, stating that it was a legal matter. The company has updated its first-quarter results press release on its web site, to reflect the new charge.

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