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Leaked Google Financials Tie EU Search and Android Antitrust Cases Together

Summary:  Google Android’s >70% monopoly-size gross profit margins were made public for the first time when Android’s 2014 summary financials were disclosed in the Oracle v. Google copyright case (as evidence of Android’s commercial success to rebut Google’s claim that Android’s unauthorized use of Oracle’s Java APIs was “fair use” not commercial activity.) Combining this newly disclosed information with what we already know, Android likely generated a little less than a third of Alphabet’s 2015 revenues, but over a third of its 2015 gross profits. It is now clearer that the formal EU antitrust investigation of Android contractually tying Google’s dominant search to gain >80% share of the world’s smartphones will result in another EU Statement of Objections that could eclipse the current EU abuse of search dominance case in antitrust liability over time.  

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How Google-Android’s “Big MetaData” Collection Model Is Anticompetitive

The EC’s Antitrust Chief, Margrethe Vestager, is signaling that some Big Data may be anticompetitive. She recently told a conference: "These incredible powerful tools, like search engines and social media, are available for free. In many cases, that's because we as consumers have a new currency that we can use to pay for them – our data. …If a company's use of data is so bad for competition that it outweighs the benefits, we may have to step in to restore a level playing field."

The issue of whether privacy/data protection violations can be anti-competitive in Google’s case is now especially ripe.

Alphabet’s Amoral Attitude and Acts

Summary

Does Alphabet Inc. -- arguably the world’s largest organization, with two billion plus users, most all the world’s information, most of the world’s top applications, limitless global ambitions, limited accountability, and self-proclaimed “don’t be evil” moral authority -- actually “do the right thing” as Alphabet publicly professes?  (Alphabet Inc. is the restructured company formerly known as Google Inc.)

If it matters to people that their leaders do what they say, to governments that corporate leaders obey the law, to the media that public leaders are honest to the public, and to the public that the leaders they trust are trustworthy, then this attempt to bring accountability to Alphabet-Google’s near unprecedented leadership, branding, and investment value has merit.

Accumulating evidence of Google’s amoral unaccountability certainly has merit and value to EU law enforcement and to U.S. State Attorneys General law enforcement, because it goes to whether or not Alphabet can be trusted to operate its business honestly and legally on its own; and to be trusted to make honest representations to law enforcement and the public.   

Google’s the Encryption Ringleader Thwarting FBI Investigation of Terrorism

Google is the ringleader thwarting the FBI’s high priority to make smartphones subject to the Communications Assistance to Law Enforcement Act, CALEA, like all other communications technologies were before smartphones, so that the FBI can continue to wiretap, investigate and thwart terrorism (ISIS etc.), and crime, like it routinely did prior to the smartphone era.  

(Anyone that doubts Google is the de facto encryption ringleader, see the evidence here. And don’t miss the fourth segment of this analysis about how Google cleverly thwarted the FBI in lobbying for a de facto anti-CALEA, last-minute, change to the FCC’s Open Internet order.) 

Does U.S. Children’s Privacy Law Apply to Google?

How the FTC handles the EFF petition charging that Google has violated its enforceable pledge to protect K-12 students’ privacy will speak volumes to the world about two big things.

First, whether FTC Commissioners believe Google is subject to U.S. privacy law, or not.

Google’s “Going Dark” Encryption Leadership Threatens Sovereign Security

Google is unique in its leadership, plans, and global marketpower to accelerate the majority of all global Web traffic “going dark,” i.e. encrypted by default. Google’s “going dark” leadership seriously threatens  to neuter sovereign nations’ law-enforcement and intelligence capabilities to investigate and prevent terrorism and crime going forward.

Google is not the only U.S. Internet company endangering the national security of many countries by “going dark” via end-to-end corporate encryption in an environment of exceptional terrorist risk -- Apple has been self-servingly irresponsible as well.

Nevertheless, Google warrants the spotlight and primary focus here on “going dark” for three big reasons.

Google’s “Mass Indiscriminate Surveillance” Threat to US-EU Data Safe Harbor

Google’s ongoing mass indiscriminate surveillance of Europeans’ private activities could threaten quick resolution of the European Court of Justice’s ruling that the US-EU Data Safe Harbor was invalid given the NSA’s “mass indiscriminate surveillance” exposed by Edward Snowden.

Google’s unique, systematic defiance of European sovereignty on these matters could warrant specifically excluding Google from what could be a timely reconstitution of the US-EU Data Safe Harbor, so that one bad actor does not spoil the whole process for the thousands of companies that have respected their Data Safe Harbor responsibilities.

Net Neutrality Trumping Privacy Undercut the US-EU Data Safe Harbor

Please don't miss my latest Daily Caller Op-ed, “Net Neutrality Trumping Privacy Undercut the US-EU Data Safe Harbor.”

  • It is proof positive of the law of unintended consequences coming home to roost for the U.S. Government.

 

 

Is Google-Alphabet’s Restructuring about Antitrust and Privacy After All?

The world’s self-professed know-it-all apparently does know a lot more than we do.

This piece assembles the evidence that Google’s benign PR explanation and stock-enhancement justification for its Alphabet holding company restructuring -- may be the truth, but apparently is not the whole truth and nothing but the truth, about the structural antitrust and privacy risks ahead that it clearly foresees, but is not disclosing.

What we have learned in the last two months is that Google is much more worried than it says about the risks it faces from a variety of real structural changes it may have to make in its core business overseas in the months and years ahead -- where the vast majority of Google’s users are, and from where over 50% of its revenues come.

Google Buys Jibe to Force Android as Web’s Default Means of Communications

Don’t miss the sweeping antitrust, privacy, security, and EU-U.S. Data Safe Harbor ramifications of Google-Android’s power grab and highly-strategic acquisition last week of Jibe Mobile’s “Rich Communications Suite” (RCS), the world’s leading, mobile-carrier, messaging platform/standard.

Summary

Simply, Google has just acquired the single missing strategic piece holding Google back from being able to centralize the recording, data transfer and analysis of most global mobile communications like it has already centralized the collection, data transfer, and indexing of the world’s digital information.

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Q&A One Pager Debunking Net Neutrality Myths