FTC to ‘Google’ DoubleClick Acquisition
FTC to ‘Google’ DoubleClick Acquisition
May 30, 2007: Google has confirmed the Federal Trade Commission has requested more information on the DoubleClick acquisition, as consumer advocacy group push the need to ensure the privacy of consumer data.
The FTC is investigating the Google acquisition of the ad firm due to antitrust concerns. It’s likely the Commission looks set to primarily address monopoly concerns as well as issues over consumer privacy.
Consumer advocacy groups have been urging the FTC to investigate the deal since it was announced on April 13. The Electronic Privacy Information Center (EPIC)says the combined two organisations will have access to an unprecedented amount of data on Web usage across the globe and individual Internet search habits.
When the EPIC filed the compliant to the Commission last month, the group argued that Google had failed to establish basic privacy safeguards. “The increasing collection of personal information of Internet users by Internet advertises poses far-reaching privacy concerns that the Commission should address,” states the EPIC led complaint to the FTC.
“Neither Google nor DoubleClick have taken adequate steps to safeguard the personal data that is collected. Moreover, the proposed acquisition will create unique risks to privacy and will violate previously agreed standards for the conduct of online advertising.”
The EPIC claims the acquisition of DoubleClick will permit Google to track a consumer’s Internet search as well as their website visits. “This could impact the privacy interests of 233 million Internet users in North America, 314 million Internet users in Europe, and more than 1.1 billion Internet users around the world,” states the complaint.
The EPIC goes on to state that Google has already expressed its intent to merge both Google and DoubleClick data, an indication it plans to profile and target Internet users.
While Google expressed its plans for protecting user privacy following the DoubleClick acquisition, the EPIC believes it’s statement was far too vague. “With this acquisition, we will be able to more broadly deploy and improve privacy enhancing technologies for users,” Google said in the statement. “We are committed to transparency for end users, and to respecting the choices they make with regards to their privacy preferences.”
While Google can track the searching activity of a user through their IP address, it can not use this data to currently engage in ‘behavioural targeting.’ However this IP address connected user searching activity is currently stored indefinitely.
Based in Washington, the EPIC claims to have originally brought the privacy risks of online advertising to the Commission’s attention back in the year 2000 and can also boost successes such as enforced information security program for some Microsoft services.
Google spokesperson Adam Kovacevich confirmed the FTC review and has requested Google provide further information, indicating the review of the deal could last for several months.
Microsoft and Google were previously wrapped up in a fierce bidding war for DoubleClick. For Google, the acquisition means the search giant can extend out further from its standard ad offering and reach a broader client base.