US regulators need to learn that the only way to alter the behavior of billion dollar companies is to serve up fines that hurt. A case in point is this report from the New York Times that has Google cutting a $170 million cheque to the FTC because it was caught collecting children’s data on YouTube and making money off that data:
Google on Wednesday agreed to pay a record $170 million fine and to make changes to protect children’s privacy on YouTube, as regulators said the video site had knowingly and illegally harvested personal information from youngsters and used that data to profit by targeting them with ads.
The measures were part of a settlement with the Federal Trade Commission and New York’s attorney general. They said YouTube had violated a federal children’s privacy law known as the Children’s Online Privacy Protection Act, or COPPA.
The fact is $170 million is a rounding error to a company that had revenues of almost $40 billion dollars last quarter. Meaning that this will do nothing to send a message that such behavior is unacceptable. If the FTC and others really want to send that message, I would say fines have to be in the same range as the GDPR which really hurt companies who run afoul of it.
More Trouble For Google As US States Team Up To Investigate It Over Possible Antitrust Violations
Posted in Commentary with tags Google on September 4, 2019 by itnerdIt seems that more than half the states in the USA are about to team up to launch an antitrust investigation. At least that’s what the Washington Post is reporting:
More than half of the nation’s state attorneys general are readying an investigation into Google for potential antitrust violations, scheduled to be announced next week, marking a major escalation in U.S. regulators’ efforts to probe Silicon Valley’s largest companies.
A smaller group of these state officials, representing the broader coalition, is expected to unveil the investigation at a Monday news conference in Washington, according to three people familiar with the matter who spoke on the condition of anonymity because they were not authorized to discuss a law enforcement proceeding on the record, cautioning the plans could change.
It is unclear whether some or all of the attorneys general also plan to open or announce additional probes into other tech giants, including Amazon and Facebook, which have faced similar U.S. antitrust scrutiny. The states’ effort is expected to be bipartisan and could include more than 30 attorneys general, one of the people said.
This is big trouble for Google as if they are deemed to be doing bad things on the antitrust front, things will get ugly. Just ask Microsoft when they ran into issues on the antitrust front. You have bet that there’s a bunch of execs at Google who are sweating buckets right now as this is far from a trivial development for the company.
Leave a comment »