Google Invades Privacy: There is no denying the fact that Google Inc (NASDAQ:GOOG) has been hit with quite a few fines over the years. No matter how hard companies of this size try, there are going to be times when fines are simply part of the business.
Google Inc (NASDAQ:GOOG) is one of the hedge fund industry’s most popular stock picks, but it’s been displaced by a financial stock recently (see which one here).
According to a report by Fox News, “Google will pay a $7 million fine to settle a multistate investigation into a snoopy software program that enabled the Internet search leader to intercept emails, passwords and other sensitive information sent several years ago over unprotected wireless networks in neighborhoods across the world.”
While $7 million may not be a lot of money to Google Inc (NASDAQ:GOOG), the bigger problem here is the lack of concern for the privacy of others. This is what has so many people upset, and is why the company is being hit with such a large fine.
Even more so, 38 states, as well as the District of Columbia, were part of the effected areas.
Here is some more information from the same article, touching on the states that will receive a payout:
“Connecticut, the lead state in the Wi-Fi investigation, will get the largest cut from the fine — nearly $521,000. Other states getting a share are: Alaska, Arizona, Arkansas, California, Colorado, Delaware Florida, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Virginia and Washington.”
With all this in mind, you may be wondering what Google Inc (NASDAQ:GOOG) has to say. Unfortunately for those who want more information, the company has only issued the following statement:
“We work hard to get privacy right at Google. But in this case we didn’t, which is why we quickly tightened up our systems to address the issue.”
In today’s day and age, privacy concerns are a big deal. It is obvious that Google missed the spot with this one. Hopefully the $7 million fine will teach the company a lesson.
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DISCLOSURE: I have no positions in any stock mentioned.
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