FTC Defends Google Decision

The FTC defended its decision to let Google carry on with its anti-trust-like antics, while other regulations in civilized nations are planning to put the boot in.

The US Federal Trade Commission reached a settlement with Google which really did little to stop the company using its dominance to push down search results from its competitors. The move attracted considerable criticism because it followed a letter from US senators to go easy on the search engine because it was good for US jobs.  We guess they mean the jobs of US senators who Google paid campaign contributions.

Google promised to change the ways it presents some search results and runs search advertising, but was exonerated of the results bias claims. Rivals including Yelp and Microsoft claimed that Google had favored its own product results over those of its competitors and called for the anti-trust case. What makes the case look more suspect is that the EU is less frightened of actually fining Google or forcing it to behave. Indeed indications from Brussels are that it has not only agreed with the rival’s complaints but will do something about it if Google does not pull finger.

But FTC chairman Jon Leibowitz told Talking Points Memo that the agency’s decision was legally sound and would be beneficial to competition and consumers. Under facts we found, all five of us, from liberal Democrat to conservative Republican, agreed that the evidence militated against an anti-trust case,” Leibowitz told TPM.

The fact that we managed to have both Google and Google’s rivals unhappy, in an odd way that’s maybe unique to Washington, that puts us in the right place substantively, he claimed. When asked if Google’s $25 million lobbying budget for the duration FTC’s investigation helped, he said that lobbying makes the companies feel good and lobbyists feel good.

“At the end of the day, whether you want to say lobbying had any influence, or cancelled itself out because there was lobbying on both sides, if you’re going to do what lobbyists want you to do in a regulatory agency, you’re not doing your job.”

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at@t Wants More

AT&T plans to buy NextWave Wireless, a holder of spectrum that could be used for mobile data services, for about $600 million.

NextWave owns licenses for spectrum in both the WCS (Wireless Communications Services) and the AWS (Advanced Wireless Services) band. AT&T said in a press release it plans to use that spectrum to feed “skyrocketing” demand for mobile data, but it will have to wait for an ongoing Federal Communications Commission review before it can take advantage of the WCS band.

The FCC auctioned WCS spectrum in 1997, but it has not been used for mobile data because of rules designed to prevent interference with satellite users in adjacent bands, AT&T said. In June, AT&T and satellite radio company Sirius XM filed a proposal to the FCC for using WCS while protecting the nearby satellite users, but the agency is still reviewing that plan. If it is approved, AT&T hopes to start using the WCS band in about three years.

The NextWave deal is only the latest in a series of moves by big mobile operators to secure more spectrum. AT&T characterized its proposed merger with T-Mobile USA last year, which was opposed by the FCC and other regulators, as first and foremost a deal to acquire spectrum. Verizon Wireless announced a deal earlier this year, which is still under FCC review, to acquire unused wireless licenses from major U.S. cable operators.

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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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Fed Contractor Arrested For Software Theft

Bo Zhang worked at the bank and took advantage of his position to commit the crime, according to prosecutors, and was arrested yesterday by the FBI and the Treasury Department.

“As today’s case demonstrates, our cyber infrastructure is vulnerable not only to cybercriminals and hackers, but also alleged thieves like Bo Zhang who used his position as a contract employee to steal government intellectual property,” said Manhattan US Attorney Preet Bharara.

“Fighting cyber crime is one of the top priorities of this office and we will aggressively pursue anyone who puts our computer security at risk.”

A complaint against Zhang has been unsealed and according to that he pilfered the Government-Wide Accounting and Reporting Program code by copying it to a hard drive owned by the Federal Reserve Bank of New York.

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