Schumer Seeks Assurances From Google On Privacy Concerns And New York Jobs

WASHINGTON , DC -Today, U.S. Senator Charles E. Schumer announced he was in the process of seeking assurances from Google, Inc., on privacy concerns related to the internet pioneer's proposed merger with the online advertising firm, DoubleClick. Appearing at a hearing of a Senate Judiciary panel on antitrust matters, Schumer revealed that he had met with Google CEO Eric Schmidt recently to raise issues related to user privacy and that Schmidt had responded, in writing, by describing measures the company will take to protect users' privacy. Also, with the two companies having a combined workforce of nearly 2,000 employees in Manhattan, Schumer further said that he had gained assurances from Schmidt that any new company would continue to grow jobs in New York.

 

In the letter, Schmidt revealed that the company was experimenting with several new privacy protection measures. One is an optout feature that would allow internet users to elect not to have a "cookie"-a datastoring mechanism that enables internet companies to customize web pages for individual users-stored on their computer. Schmidt also said that Google was exploring the feasibility of a "crumbling cookies" feature, so that user data was not stored in a single place, as well as other safeguards that would disclose the sponsors behind the ads viewable by the user.

 

"At a time when you can learn just about everything you ever wanted to know about someone simply by Googling them, Google officials are showing they do take privacy concerns very seriously," Schumer said. "The steps described by Dr. Schmidt would represent important measures toward addressing my privacy concerns.  I hope Google will take these steps and others."

 

Schumer's opening statement at today's hearing is included below, as prepared for delivery. A copy of Dr. Schmidt's letter to Schumer is attached.

 

 

STATEMENT OF SENATOR CHARLES E. SCHUMER

Senate Judiciary Subcomittee on Antitrust

September 27, 2007

 

Mr. Chairman, thank you for holding this hearing.  Given the high stakes and important issues on all sides, it is appropriate that we hold a hearing to look at the antitrust and other implications of mergers in this sector.

 

I am concerned about consumers' privacy as these companies, who hold vast amounts of information, do consider merging.

 

It has been amazing to watch computer technology develop.  It wasn't long ago when nobody had personal computers, and when the only computers in the world were the size of a small house.

 

Now, just a few decades later, you can browse the Internet on a device that can fit in the palm of your hand.

 

Of course, each of these new innovations brings new challenges.  One of these is the complicated but interesting issue of online advertising that brings us here today.

 

We can't ignore the fact that an increasing portion of the advertising dollar around the world is going to online advertising.  These are the text or picture ads that show up every time we do a search or go to an ISP like AOL or Google.

 

The companies at issue here are some of the largest and most profitable in America.  It is my sincere hope that as they continue to grow, they will use their expansions for the good of consumers.

 

But I want to make sure three things are addressed in the online advertising deals: antitrust laws, privacy and jobs in New York.

 

On the antitrust side, there are certainly questions about what impact a merger such as this will have on the advertising market.  And those questions should be answered by this Committee, the Justice Department, and the FTC as they review this merger.

 

In addition, I have several concerns on the privacy side.  As the internet expands, the amount collected about our personal life grows.  Some of it is collected to better target ads to each of us.

 

In light of my concerns, I met with Google CEO Dr. Eric Schmidt.  I asked for a specific commitment from Google that it will protect privacy following the merger.

 

At this time, Mr. Chairman, I'd like to place into the record a copy of a letter from Dr. Schmidt to me that lists some of the steps Google tells me it plans to take to protect privacy.

 

Google tells me that it is looking at ways to provide users with better forms of notice to help users understand who is behind the ads they see.

 

Google is looking into an "opt out" mechanism in the future so that individuals can choose not to have cookies placed on their computers, and that it is experimenting with new privacy protection features.  For instance, they are looking into the idea of using "crumbled" cookies so that user data isn't stored in a single cookie.

 

Mr. Chairman, these steps would represent important measures toward addressing my privacy concerns.  I hope Google will take these steps and others. I thank Dr. Schmidt for responding to my requests in this way.

 

Mr. Chairman, thank you for having this hearing, and thank you to all of the witnesses for coming.