- CNTV English - CCTV News

Google's ad system under probe

05-12-2011 09:53 BJT

Google Inc's lucrative online advertising system is facing a US Justice Department probe that is expected to cost the Internet search leader at least US$500 million.

Hugo Barra, the company's product management director, speaks during a keynote speech at
the Google IO Developers Conference in San Francisco, California, on Tuesday.[Shanghai

The disclosure made by Google on Tuesday in a quarterly report to the United States Securities and Exchange Commission serves as the latest reminder of the intensifying regulatory scrutiny the Internet's most powerful company faces.

European regulators have opened a wide-ranging probe into whether Google unfairly manipulates its search results to favor its own services and rigs its ad system to drive up prices. The Texas attorney general also has been looking into complaints about whether Google's search recommendations stifle competition.

The SEC documents filed on Tuesday provided few details about the nature of the Justice Department's inquiry except that it involves how Google's automated system has been treating some unnamed advertisers. Google's ad network, which primarily delivers short text ads alongside search results and other Web content, is the main way the company makes money. In just the first three months this year, Google sold US$8.3 billion in advertising.

Dealing with the ad probe apparently won't be cheap. In its SEC filing, Google said its management decided earlier this month to set aside US$500 million to cover a possible settlement. That move resulted in a charge that lowered the first-quarter earnings that Google announced in mid-April. With the change, its net income fell from the previously reported US$2.3 billion to US$1.8 billion.

Earlier, Wall Street had panned Google's first-quarter results because of rapidly rising expenses that are outpacing its revenue growth.

Editor:Wang Xiaomei |Source:

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program