- Associated Press - Thursday, August 9, 2012

SAN FRANCISCO (AP) - Google is paying a $22.5 million fine to settle the latest regulatory case questioning the Internet search leader’s respect for people’s privacy and the integrity of its internal controls.

The penalty announced Thursday by the Federal Trade Commission matches the figure reported by The Associated Press and other media outlets last month. It’s the most that the FTC has ever fined a company for a civil violation.

The rebuke resolves the FTC’s allegations that Google Inc. duped millions of Web surfers who use Apple Inc.’s Safari browser.

Google had assured people that it wouldn’t monitor their online activities, as long as they didn’t change the browser settings to permit the tracking.

Google broke that promise, according to the FTC, by creating a technological loophole that enabled the company’s DoubleClick advertising network to shadow unwitting Safari users. That tracking gave DoubleClick a better handle on what kinds of marketing pitches to show them.

The FTC concluded that the contradiction between Google’s stealth tracking and its privacy assurances to Safari users violated a vow that the company made in another settlement with the agency in October.

The latest settlement doesn’t affect a separate FTC inquiry over whether Google has been abusing its dominant position in Internet search to highlight its own services over rivals and drive up online advertising prices. The settlement also doesn’t come with any admission from Google of wrongdoing.

The company has acknowledged that DoubleClick was tracking Safari users, but insists the monitoring wasn’t by design.

All Google wanted to do, according to the company, was create a way for Safari users to press on a button to signal they recommended an ad. Google said it didn’t realize its tinkering altered Safari’s automatic privacy settings in a way that allowed for broader surveillance.

After the circumvention was publicized in February by a graduate student at Stanford University, Google stopped the tracking on Safari. The company says it never collected any personal information.

“We set the highest standards of privacy and security for our users,” Google said Thursday.

Google’s actions, though, have cast doubts about the sincerity of its commitment.

The Safari intrusion is the latest privacy stumble at Google, whose dominant Internet search engine and popular email service provide valuable peepholes into people’s minds.

In 2010, Google set up a social networking service called Buzz that exposed people’s email contacts. Following an FTC investigation, Google agreed to 20 years of oversight and a pledge not to mislead consumers about privacy issues. That’s the pledge that the FTC says Google broke with Safari.

Google also got in trouble for collecting personal data transmitted over unprotected Wi-Fi networks as Google cars cruised neighborhoods around the world taking pictures for the company’s online mapping service.

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