Google's online advertising faces U.S. probe

The company has taken a charge of US$500 million in this connection

Google is under investigation by the U.S. Department of Justice in connection with its advertising program, and has set aside US$500 million for a potential resolution, the company said in a regulatory filing on Tuesday.

Techworld Australia: 10 ways to improve your PPC marketing strategy

As a result of the charge, the company also revised its first-quarter net profit to $1.8 billion from the $2.3 billion it announced last month.

In its quarterly report filed with the U.S. Securities and Exchange Commission, Google said that in May it accrued $500 million for the three-month period ended March 31, 2011 in connection “with a potential resolution of an investigation by the United States Department of Justice into the use of Google advertising by certain advertisers”.

Although it cannot predict the ultimate outcome of the matter, Google said that it believes that it will not have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows.

The company did not explain why the charge had been taken retrospectively on its first quarter accounts. It is also not clear to whom Google would have to make the payment in the event of a resolution.

Google declined to comment, stating that it was a legal matter. The company has updated its first-quarter results press release on its web site, to reflect the new charge.

The investigation by the DOJ is one of many that the company faces around the world. It testified in the U.S. on Tuesday on the issue of mobile privacy before the Senate Judiciary Committee's privacy and technology subcommittee, in the wake of recent reports that Google and Apple have been collecting data about the location of Android and iPhone users without their permission.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesadvertisingAppleGooglefinancial resultsSEC Filingsinternetsearch enginesInternet service providers

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?