Google near US settlement over ad practices

Google disclosed earlier this week that it had set aside $500 million in anticipation of the results
Google is close to reaching a settlement with the Justice Department over allegations it made hundreds of millions of dollars by accepting advertisements from online pharmacies that break US law, The Wall Street Journal reported.

Google is close to reaching a settlement with the Justice Department over allegations it made hundreds of millions of dollars by accepting advertisements from online pharmacies that break US law, The Wall Street Journal reported.

The disclosed earlier this week that it had set aside $500 million in anticipation of the results of a US government investigation into "the use of advertising by certain advertisers."

Google did not provide further details in the filing with the US (SEC).

"As this is a legal matter, we're not commenting on it," Google said on Thursday in response to an AFP inquiry.

But the Journal, citing "people familiar with the matter," said it concerned an investigation into whether Google had knowingly accepted ads from online pharmacies based in Canada and elsewhere that violated US law.

"It's unclear whether those online drugstores were alleged to have sold counterfeit or expired drugs, whether they didn't require a valid doctor's prescription, or both," the newspaper said.

The Journal said a $500 million payment "would rank high among the criminal or civil penalties paid by companies in disputes with the US government."

In 2007, Google, Microsoft and Yahoo! agreed to pay a combined $31.5 million fine to settle allegations they had accepted ads from sites, the newspaper said.


Explore further

Google testing TV search service with Dish Network

(c) 2011 AFP

Citation: Google near US settlement over ad practices (2011, May 13) retrieved 28 March 2020 from https://phys.org/news/2011-05-google-settlement-ad.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
0 shares

Feedback to editors

User comments