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Google seeks to buy DoubleClick amid privacy concerns

Google Inc said on Monday that it has asked EU regulators to approve its pending US$3.1 billion purchase of Internet ad targeting colossus DoubleClick Inc.

"We ourselves asked the European Commission to look at the proposed acquisition, as we believe it is good for users and advertisers and it fosters competition," said Emmanuelle Flahault-Franc, a Google spokeswoman, said.

The California-based Internet search powerhouse submitted a filing with the EU asking it to approve the DoubleClick purchase, according to Flahault-Franc.

The commission set an initial review deadline of Oct. 26.

Privacy advocates warn that Google's takeover of DoubleClick would give the Internet giant unprecedented access to personal data of Web users worldwide.

Google maintains there is "no basis" for concern. DoubleClick said Google "would not be able to match its search data to the data collected by DoubleClick" because of contractual restrictions.

Google rivals Yahoo Inc and Microsoft Corp have expressed concerns regarding how the acquisition might effect competition and privacy online.

DoubleClick and Google, along with many other Internet firms, install software bits called "cookies" on people's computers to track when Internet users visit Web pages, click on an ads or log into Web sites.

Companies say this simplifies browsing for users who repeatedly visit certain Web sites, but it also allows browsing habits to be tracked back to the individual computer or user.

DoubleClick came under fire several years ago from consumer advocacy groups that accused it of using "cookies" without getting permission from the Internet users.

It negotiated a settlement in 2002 that included being more open about what data it keeps while agreeing to purge some of the data it stores within three months of its collection.

Google -- itself criticized for the threat it poses to personal privacy -- is pressing for action amid criticism about the enormous access to personal information on the Web.

Peter Fleischer, the firm's global privacy counsel, said on Monday that national regulators need to agree on a basic set of global privacy protections for the Internet within the next five years.

Fleischer said three quarters of countries had no Internet privacy standards at a time when the amount of sensitive personal and financial data on the Web was soaring.

Google says the firm's business agenda, the world economy and the Internet could suffer unless more is done to ensure basic privacy on the Web.

"What we're saying is that the Internet is making this particularly urgent and that the Internet develops at a different speed than the speed at which traditional lawmaking and policy-making discussions take place," Fleischer said.

"I think this is something that needs to happen within five years. That's just us saying what we think is realistic as an urgent action," he said.

Google is unhappy with what it calls a patchwork of conflicting privacy rules in some countries and a complete lack in many others.

"I think everyone has acknowledged that the status quo is not good enough any more," Fleischer said.

Google wants countries to adopt privacy principles agreed to by several Asia-Pacific countries. Fleischer said some backed this idea while others wanted to focus on what the Organization for Economic Cooperation and Development is doing.

"That's fine. The important thing from Google's perspective is that there is a focus and debate around moving forward on global privacy standards," he said. "If we can ... improve the standards in three quarters of the countries in the world, regardless of which model they follow, that is a huge step forward."

He said perfect harmonization was unlikely, but the basic model could combine laws, codes of conduct and best practices.

Even if nations did not agree on standards within five years, Google would consider it progress if some countries without Internet privacy rules took action, said Fleischer.

"We're playing a very long game here. We believe we're working for the success of Google services over a very long period of time ... and one of the things that everybody needs to improve is an understanding of privacy," he said.
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