We're hiring

Call 03332 207 677

Stephen Logan

Google Readying itself for a Big Hit from US Regulators

11th May 2011 News, Industry News 1 minute to read


It would be fair to say that Google has become fairly accustomed to dealing with Government probes and antitrust hearings over the last few years. Even so, it would appear that the search giant is readying itself for a fairly substantial hit in the upcoming investigation by the US Government into advertising practices. In fact many sources suggest that this could amount to a war chest of half a billion dollars.

So is this an admission of guilt or the result of a safety-first approach by a company that has, as already mentioned, felt the wrath of authorities on numerous occasions?

Information relating to this particular investigation is currently limited. However, what we do know is that it concerns the activities of “certain advertisers”, presumably on AdWords, AdSense or DoubleClick (possibly all of the above). However, for a company that made $2.3 billion in the first quarter of this year alone, even $500 million isn’t going to do too much damage to its bottom line.

Worldwide, Google is facing a number of additional challenges. At the tail end of last month President Sarkozy invited the leaders of the search engine and other Internet leaders to the G8 summit to discuss taxation [see: Sarkozy invites web leaders to G8, wants more tax | Reuters]. France has previous with Google particularly, having threatened to impose a special levy on all income made by online advertisers within the country.

It was reported in January 2010 that Google had made $720 million in advertising revenue in France, a country where broadband is subsidised by the state. And it is this issue that has led the French authorities and those in many other countries to take umbrage at the tax-free/reduced tax that they enjoy in individual principalities. Most of the operational tax goes back to the nations in which the company is headquartered, which is the US of course and Ireland in Europe.

Therefore this is a volatile time for the search engine and potentially expensive too. However, it appears that Google are well prepared for the worst, which should mean that there’s no significant impact on advertisers or other services.

Share this post

Stephen Logan
About the author

Stephen Logan

Stephen Logan was a Senior Content Marketer at Koozai. With four years experience writing exclusively for the search engine marketing industry, he has amassed a wealth of industry related knowledge. He will be breaking news stories and contributing compelling SEO related stories.

What do you think?

  • aspect-ratio Create Britain
    Cat Birch

    Koozai Supports The Drum Network and Their ‘Create Britain’ Initiative

    The Drum Network has launched a new initiative called ‘Create Britain’ which aims to show the world that Great Britain is still an awesomely creative marketplace, despite Brexit.

    Create Britain is an online interactive map that invites businesses from the creative industry to contribute a short video to claim their own pin on the map that links to their video clip. The video clips need to answer one question: ‘What makes British creativity so great?’.

    (more…)

    Cat Birch
    @MissCatBirch
    13th Dec 2016
    News
  • aspect-ratio HoloLens Logo
    Samantha Noble

    The Microsoft HoloLens and How Brands Could Use It

    When we think of reality headsets, our immediate thoughts go to viewing the world in a virtual reality (VR) from wherever we are in the world. Whether that be your own living room, office or business, VR headsets allow you to transport yourself into a completely different environment and immerse yourself in that world.

    This is what makes HoloLens different.

    (more…)

    Samantha Noble
    @samjanenoble

    News

Digital Ideas Monthly

Sign up now and get our free monthly email. It’s filled with our favourite pieces of the news from the industry, SEO, PPC, Social Media and more. And, don’t forget - it’s free, so why haven’t you signed up already?