Wednesday, June 15, 2011

Google’s Ad Network Facing Investigation

A few days ago Google released their quarterly report to the Securities and Exchange Commission which enclosed details of Google’s investigation by the U.S Justice Department. This investigation serves as a reminder to the public of the intensifying regulatory scrutiny that large companies like Google are facing. Google disclosed information to the Securities and Exchange Commission, noting that this investigation was going to cost the company an estimated $500 million dollars.
The investigation is being conducted due to allegations of whether Google unfairly manipulated their search results to favor the companies own services, allowing their ads system to show more demand which in turn drove up the price. The Texas attorney general’s office has also noted that they have been looking into complaints recently made about whether Google’s search recommendations stifle competition.
In previous court filings, the U.S Justice Department had raised concerns about the power Google holds within their marketing share.

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