Our Monmouth Blog

Richard Waters of the Financial Times recently reported a dead on article about Google’s lack of follow-up on its commitment to deal with privacy issues as a result of the DoubleClick acquisition. The article titled “Google resolve crumbles on ‘cookies’ pledge” reports

The privacy issue involves “cookies”, the small digital files which online advertising companies plant on consumers’ computers to track internet sites they visit. They use the information to learn about consumers’ interests in order to target advertising.
The issue came to the fore last April with Google’s announced plan to buy DoubleClick, an internet company which delivers many of the ads consumers see online and which plants many of the cookies that sit on personal computers. The combination of Google’s records of a consumer’s internet searches with DoubleClick’s information from cookies prompted complaints that one company would hold extensive data about a large proportion of the world’s internet users.
Google fended off the outcry partly with a promise to use technology to minimise cookies’ invasiveness. It later announced technology trials to try to come up with new versions of cookies that would pose less of a problem, for instance by breaking down the data it collected about each consumer into smaller pieces through what are known as “crumbled cookies”.

Also in a Cnet report by Matt Asey on his Blog called The Open Road posted:

European regulators cut Google some slack based on its word that it was going to immediately look into ways to boost privacy. A year into that pledge, Google has done little, by its own admission.

There is no doubt in my mind that Google will soon be facing a growing public concern if it does not address the issue of privacy. The public and industry insiders have been patient with Google but it does have significant reputation risk if it does not address these issues shortly.

Google is still the golden goose of Internet as reflected in its first quarter earning report with a 9% increase in net revenue growth beating Wall Streets expectations. As Google continues to grow and expand its influence it needs to remember its self-defined mission:

“Google’s mission is to organize the world’s information and make it universally accessible and useful”.

There is no other company in the world with a more important role is the distribution of information than Google. Global information flow and privacy are a tremendous responsibility for a young company. While I am confidant that Google can overcome all of the concerns with quality solutions it becomes more difficult to do what is right when it contrasts with the right business decision.

Best wishes.

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