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However, Judge James Ware denied a request that Google hand over a list of people's search requests. The Justice Department had wanted access to search records to help prevent access to online pornography. The judge said privacy considerations led him to deny part of the department's request. "This concern, combined with the prevalence of internet searches for sexually explicit material, gives this court pause as to whether the search queries themselves may constitute potentially sensitive information," he said in his ruling. Google lawyer Nicole Wong said it was reassuring that the judge's decision had "sent a clear message about privacy". "What his ruling means is that neither the government nor anyone else has carte blanche when demanding data from internet companies," she said. Public perceptions The ruling said the request for 50,000 web addresses, or URLs, was relevant for use in a statistical study the government is undertaking to defend the constitutionality of its child anti-pornography law. Earlier, the government had reduced its request to just 50,000 web addresses and roughly 5,000 search terms from the millions or potentially billions of addresses it had initially sought. "The expectation of privacy by some Google users may not be reasonable," Judge Ware wrote, "but may nonetheless have an appreciable impact on the way in which Google is perceived, and consequently the frequency with which users use Google." The case has focused attention on the issue of personal information held by internet companies. The US Government is seeking to defend the 1998 Child Online Protection Act, which has been blocked by the Supreme Court because of legal challenges over how it is enforced. It wants the data from the search engines to prove how easy it is to stumble over porn on the net. Three of Google's competitors in internet search technology - AOL, Yahoo and MSN - have complied with subpoenas in the case. | ||
Thursday, May 10, 2007
Google ordered to hand over data
Google increases US search share
Google's share rose to 42% in February, up 6% on the same month in 2005, while rival Yahoo saw a 4% drop to 27%, according to tracking firm ComScore. Usage of MSN's search engine fell by 3% to 13% said ComScore, while Ask had a 1% rise to 6%. In a separate report, analysts Merrill Lynch said Google's advertising revenues was expected to rise. The Merrill Lynch report said: "We expect Google's increased market share in search queries, and better monetisation of queries to lead to increased share of ad dollars relative to its competitors." A report by RBC Capital Markets said Google could go on to capture a 70% market share. It said: "The question really comes down to how long it could take." Popular brand ComScore said the total number of search queries rose by 11% over the year. Google share prices rose by 1.4% after ComScore's results were announced on Tuesday, rising to $374.77 (£216), while Yahoo rose 1.5% to $31.93 (£18.40). Earlier this month, Google chief executive Eric Schmidt reiterated the firm's belief that it will continue to enjoy strong increases in its revenues. He spoke out two days after his chief finance officer George Reyes warned revenues were slowing, prompting a 10% dip in the share price. A federal judge ordered Google to turn over search data, including 50,000 web addresses, to the US government as part of the authorities' bid to prevent access to online pornography. | ||
Google sells $2.07bn of its stock
US search engine company Google has raised $2.07bn (£1.2bn) through its second share sale in seven months.
Google, which first listed on the stock market in August 2004, sold 5.3 million shares priced at $389.75 each.
The shares were sold to funds that track the Standard & Poor's 500 index because Google has replaced oil firm Burlington Resources in the benchmark.
Google is planning to use the cash from the sale to fight off stiff competition from rivals Yahoo! and Microsoft.
Price growth
A recent report found that four out of 10 web searches conducted in the US are now done using the Google search engine, giving the company a 42% market share in February.
That makes Google the world's most-used search engine and rivals have renewed efforts to eat into its market share.
To stay ahead of the competition, Google is expanding into new areas and has bought other companies to broaden its access to the online advertising market.
Google's share price has suffered in recent weeks - the stock has lost more than 6% this year - as investors questioned whether it could keep revenues growing as quickly as it has done in the past.
However, despite the concerns, Google's shares have performed remarkably well since it listed on the stock market and have doubled in value during the past 12 months.
On Friday, Google shares closed $1.56 higher at $390.
Google's quarterly profits soar
Internet search firm Google has said first-quarter profit rose 60% to $592m (£333m), from $372m a year ago.
Revenue was up 79% to $2.25bn, ahead of analysts' forecasts, as the firm showed it was responding to the challenge from Microsoft and Yahoo.
Google, listed on the stock market in August 2004, saw its shares rise by 6% after the ball trading in New York.
Meanwhile an Arkansas judge approved a preliminary settlement of $90m between Google and disgruntled advertisers.
They had claimed the search provider overcharged them for their adverts, and that they were billed for false customer leads.
Google has to pay up to $60m in future advertising credits, and up to $30m is available to pay lawyers for those making claims against Google.
"We are pleased that we were able to reach an agreement and are pleased the judge has granted preliminary approval," Google's lawyer Daralyn Durie said.
Commenting on the results figures, Google chief executive Eric Schmidt said the California-based company had an "exceptional quarter with strong growth and profitability".
Analyst Martin Pykkonen of Hoefer and Arnett said: "They're still spending pretty heftily on marketing expenses but strategically it's the right thing to do and the underlying reason why revenue growth was so strong."
Google targets mobile future
If you use Google, the chances are that you search its index via the internet.
But the company's ambitions do not begin and end with its online presence. For some time now, it has been establishing ways for people to use its roster of services via mobile devices.
The man in charge of the Google mobile mission is Dipchand "Deep" Nishar. He believes that when people are out and about, they want very different answers from Google than they would if they were sat in front of a PC.
For instance, he said, the first result that comes up after typing "film" into a PC browser is the Internet Movie Database.
"But type 'films' into a mobile browser and you are most likely going to see a movie," he told the BBC News website.
Handy helper
"The same search query, because of the context, means very different search results," said Mr Nishar. "Search on mobiles is about finding not browsing.
"It's a smaller form factor and you are not going to sit at it for three hours. Most people in the developed world are within 20 or 30 minutes of broadband and a screen, and that's when they will browse.
"On a mobile it's important that you find it right away."
This means that Google has to slice its huge corpus of data differently for mobile users and tailor results to where people are sitting or standing when they make the query.
What is also important to realise about mobile devices, said Mr Nishar, is that they are far more personal than a home computer. 
"A PC is much more of a shared device," he said. "But a mobile is not something I share with anyone."
So far the bits of Google you can reach via your mobile are fairly limited.
You can use a browser on your phone to send queries to the search site as you would on a PC. You can also search for images or just search those sites created just for mobile phones.
It is also possible to read your GMail account via a mobile and, in the UK, you can search Google via text messages.
In California it is possible to get Google maps on your handset to help if you are looking for a particular place.
Using many of these services requires a web browser on a phone but, said Mr Nishar, only about 50% of the world's phones are powerful enough to run that software.
Culture shock
Google does not make all its mobile services available in all locations because different cultures make very different uses of their phone.
For instance, said Mr Nishar, text messaging is huge in Europe and China. By contrast, almost no-one in Japan uses it.
But the Japanese do make very heavy use of e-mail on mobile devices. They also do a huge amount of net surfing via handsets.
In many nations outside the West phones are also hugely important ways of going online largely because they are so much cheaper than a desktop computer. 
In China, said Mr Nishar, there are three times as many mobiles as PCs. In nations like Nigeria, people prefer mobiles because power supply problems in running a computer.
"There are many emerging markets where people do not have a PC and will never have one," he said.
Add in the moves towards using net phone services via wi-fi and you can understand why Google is dedicating a lot of time and resources to mobile developments.
Eventually, the thinking goes, most people will be accessing Google most of the time via a mobile device.
"It's going to get better, faster, cheaper thanks to Moore's Law and become a better experience in the long run," said Mr Nishar. "It's going to be a very important channel."
Search giant Google has launched an online payments system which aims to compete with auction giant eBay.
Dubbed Google Checkout, the system is designed to boost Google's main source of revenue - selling advertising.
The service offers some free order processing to Google's millions of advertisers, but will initially be available only to stores in the US.
EBay unit Paypal is the market leader in online payments. EBay stock slipped ahead of Checkout's launch.
Checkout's long testing process - it has been in the works for a year or more - has meant that rumours have been rife about the service, which many had dubbed "Gbuy" .
Simple system
Google says it will enable shoppers to set up a single account with all their credit card and delivery details, allowing online merchants to sell through their Google advertising.
For every dollar they spend on advertising, merchants will get $10 off the cost of processing orders they receive.
"It's a really smart move by Google, a wonderful way to close the loop with its advertisers," said Charlene Li of Forrester Research.
But she pointed out that since Google would be hanging onto information about customers, large retailers might be reluctant to give up the chance of collecting valuable marketing information themselves.
And others said that Paypal's position was strong enough to resist the Google onslaught.
"It's not going to kill Paypal," said Greg Sterling of Sterling Market Intelligence, saying that there was room in a market long dominated by Paypal for several such services.
Commentators pointed out that the two services would not strictly be in direct competition, as Checkout relied solely on credit card payments.
The Google service will simply act as a transferring house, whereas Paypal has the facility for users to set up their own accounts to pay into - as well as offering credit card payments.
Competition heats up
Commentators have also warned that the move puts Google in direct competition with one of its biggest advertisers - eBay.
EBay's shares have suffered as a result, dropping some 7% in the past week.
In a pre-emptive strike against the plans, last month eBay signed a deal with Google rival Yahoo.
Under the deal, Yahoo, the largest internet media firm, will be the exclusive provider of branded advertising on eBay's site while Yahoo will use PayPal to let its customers pay for Yahoo services.
Of the names to sign up to Checkout so far, Starbucks and Buy.com have also retained Paypal as a method of payment as well.
Google could face Brazil lawsuit
Google could face legal action in Brazil for failing to provide details of site users allegedly involved in pornography and crime.
Brazilian prosecutors say that Google's community website Orkut - popular in Brazil - contains information promoting crime and child pornography.
Federal prosecutors want a judge to order Google in Brazil to disclose users' information or be closed down.
They also want Google to pay $61m (£32.2m) as a fine for damages.
The prosecutors say this fine stems from Google's failure to obey former judicial orders.
By withholding information about Orkut users, Google is thwarting a separate criminal investigation, the prosecutors argue.
User information
However, in reaction to news of the prosecutors' complaint last week, Google said that it had met all requirements.
"We have obeyed all the judicial orders that requested we remove undue content," said Google spokesperson Nicole Wong at the time.
"Some orders demanded that we turn over user information for investigation and we complied," she said.
Google also said Brazilian officials should request information from the US, since that is where Orkut pages were hosted.
The search engine said it did not hold information about its users or any of Orkut's online communities in Brazil.
Based on Google information, Orkut has about 16 million users, of which nearly three-quarters are Brazilian.