May 7, 2009 3:26 PM PDT

Google expects scrutiny, likes Netbooks

by Tom Krazit
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MOUNTAIN VIEW, Calif.--Google shouldn't be surprised to face government scrutiny as it continues to grow.

CEO Eric Schmidt held court on a wide range of topics Thursday at Google's annual meeting.

(Credit: Google)

At least, that's what CEO Eric Schmidt thinks. In a wide-ranging discussion with reporters prior to Google's annual meeting at the company's headquarters, Schmidt deflected questions about reported government inquiries that have surfaced in past weeks by saying "we should expect governments around the world to pay attention to what we do, and hold us to the principles that we've articulated."

The Department of Justice is reportedly looking into Google's settlement with publishers over the rights to display book content online, which Schmidt called a "historic" agreement. And Google confirmed that the Federal Trade Commission wants to talk to Google about Schmidt's role on Apple's board of directors, which could be seen as a conflict of interest given Apple's iPhone business line and Google's Android project.

Schmidt said such scrutiny is to be expected as Google expands its reach into areas that were previously the domain of other interests.

"We continue to believe the mission of the company is important, even if there is pressure from other industries. (But) we are more careful about when and how we do things that are going to raise the concerns of any party," he said. Rachel Whetstone, Google's vice president of public policy and communications, has been leading efforts in this area, he said.

Other items discussed during the day:

• Susan Wojcicki, vice president of product management, said Google is looking hard into ways to make money off social-networking services, as there there has been an "explosion" in potential ad inventory. "We believe there are ways to monetize it over time, but it will be different from search because the nature of intent is different."

Fresh off her trip to Washington, D.C. to testify before a House subcommittee, Marissa Mayer, vice president for search products and user experience, said Google is looking at how news coverage will evolve in the future, including possible changes to the way news stories are presented. Mayer is also in charge of thinking of ways to improve the relevance of "microblogging" (read: Twitter) into both Google's regular search results and blog search, she said.

• Speaking of Twitter, Schmidt said that Google was "waiting for the right opportunities at the right price" when it comes to making acquisitions. Twitter, of course, has been the subject of countless rumors regarding acquisitions from the likes of Google and, most recently, Apple.

• Schmidt declined to comment on the possibility of Android Netbooks, such as appeared to surface earlier this week with regards to Dell. But he did say that he believes "the Netbook phenomenon looks very real," and that it fits well into Google's notions of cloud computing.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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by gerrrg May 7, 2009 5:43 PM PDT
I'm still confused on how there is a conflict of interest between Android and iPhone. A conflict of interest implies that one stands to benefit or stands to help another by way of their ties. I'm not getting how the tie between these two firms will mean LESS competition between Android and iPhone or the smartphone market.

The only thing I can see, is that the Justice Department might be concerned about collusion between iPhone and Android, which would be silly, considering that there was never a complaint about Microsoft's investment in Apple over 10 years ago: http://news.cnet.com/2100-1001-202143.html.

This whole investigation is perplexing. Just when I thought they brought in the brains into the Justice Department, we have this?
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by wshun0 May 7, 2009 7:26 PM PDT
10 years ago, Apple looked like a dying company. Nowadays, just Apple itself is scary. Joint force of Apple and Google? .......
by Super2online May 8, 2009 5:59 AM PDT
The law states you cannot be on the board of a company that offers competing products. There is to great an opportunity for collusion against your common competitors. That's why Schmidt should be removed from Apples Board.

Google is already very cozy with Apple with agreements to use there search services so being allowed to be on their board is a terrible idea.
by theobstruction May 9, 2009 5:19 AM PDT
If the law really says anything like what super2online atates, then the law is stupid. If company A has someone on their board from another company that could create a problem, whether or not they have competing products, maybe company A should clean their own house. O, wait, silly me. No one in America is supposed to be responsible for their own actions anymore, that's what Big Government is for.
by molotov May 8, 2009 9:49 AM PDT
Google needs to stop copying Apple in everything they do. Apple stirs, Google jumps!
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by illegallydead May 8, 2009 10:26 AM PDT
Examples, please?
by Anadroj May 8, 2009 10:45 AM PDT
Google should be scrutinized and retweeted.
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