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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Apple Outs Patch For Tracking Issue

As Apple promised last week in several discussions regarding its location tracking issues, iOS 4.3.3 addresses three bugs related to the database of location information on iOS devices. Firstly, it reduces the amount of the cached location information to a week’s worth, rather than relying on a size limit, as it previously did.

Secondly, it no longer backs up the cache to your Mac or PC via iTunes upon syncing, so the information isn’t available to anyone with access to your computer. And finally, the cache is now deleted from the device when Location Services are disabled in iOS’s Settings app.

Apple has also announced plans to encrypt the location information on iOS devices itself in the next major update to the operating system, which presumably means it will be incoporated into iOS 5.

The iOS 4.3.3 update applies to the iPhone 4, iPhone 3GS, iPad, iPad 2, third-generation iPod touch, and the fourth-generation iPod touch. Exceptions to this fix though, are the iPhone 3G and the second-generation iPod touch, both of which were supported by the original release of iOS 4 when the location database is believed to have been created but have since been dropped from compatibility. Also missing in action is the CDMA iPhone 4, although some reports have suggested that it didn’t log data in the same way as the GSM model.

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