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Home - Google reportedly fined $22.5 million by FTC
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Google reportedly fined $22.5 million by FTC

by Martha DeGrasse August 9, 2012
written by Martha DeGrasse August 9, 2012 Share
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While smartphones running Google’s Android operating system have been out-shipping iOS devices by 4-to-1, and analysts continue to evaluate the outlook for the two operating systems, federal regulators have been busy evaluating claims that Google tracked the clicks of millions of iPhone and iPad users without their knowledge. The Federal Trade Commission has reportedly ordered Google to pay a $22.5 million fine for deceiving users of Apple’s Safari web browser.

Safari, of course is Apple’s default web browser on its iOS devices, as well as on Macintosh computers. The browser does not allow “cookies” that track a user’s clicks, unless a user changes Safari’s settings to allow tracking. But Google apparently found a back door way to track clicks through its DoubleClick advertising software. By keeping tabs on which websites people visited, Google was able to show them ads that were more likely to match their interests. But the search engine giant led users to believe that their privacy was still protected by Safari, and this deception led to the fine. The FTC is also requiring Google to remove all tracking cookies from devices using Safari. This sounds like an infinite task, but Google has until 2014 to complete it.

The $22.5 million fine may not represent a huge setback for Google, which booked almost $38 billion in revenue last year, but it does represent the largest fine the Federal Trade Commission has ever levied on a company for a civil violation.

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Martha DeGrasse

Martha DeGrasse is the publisher of Network Builder Reports (nbreports.com). At RCR, Martha authored more than 20 in-depth feature reports and more than 2,400 news articles. She also created the Mobile Minute and the 5 Things to Know Today series. Prior to joining RCR Wireless News, Martha produced business and technology news for CNN and Dow Jones in New York and managed the online editorial group at Hoover’s Online before taking a number of years off to be at home when her children were young. Martha is the board president of Austin's Trinity Center and is a member of the Women's Wireless Leadership Forum.

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