December 14, 2007 10:00 AM PST

Week in review: Google's DoubleClick deletion dilemma

The controversial fight over Google's proposed acquisition of online ad firm DoubleClick took some politically intriguing turns this week that opponents hope will imperil the $3 billion merger.

It began when two privacy groups asked the chairman of the Federal Trade Commission to recuse herself from the agency's review of proposed acquisition because her husband's law firm is advising DoubleClick on antitrust. In addition, FTC Chairman Deborah Platt Majoras used to work at the law firm, called Jones Day, according to a complaint about the matter sent to the FTC by the Electronic Privacy Information Center and the Center for Digital Democracy.

An FTC representative on Wednesday said the chairman was reviewing the petition with the agency's chief ethics officer.

"We learned only yesterday that Jones Day is representing DoubleClick before the European Commission, not the (U.S.) Federal Trade Commission," FTC spokeswoman Claudia Bourne Farrell said on Wednesday. "Jones Day has not appeared before the FTC on this matter."

However, that would seem to conflict with what the Jones Day site said:

"Jones Day is advising DoubleClick Inc., the digital marketing technology provider, on the international and U.S. antitrust and competition law aspects of its planned $3.1 billion acquisition by Google Inc."

Soon after CNET's article on the controversy appeared, Jones Day deleted that Web page, and it's now blank. Ironically, Google's cached copy provides the information that was erased from the site.

There are two likely explanations: one, Jones Day is in fact representing DoubleClick before the FTC and is reluctant to acknowledge it; or two, the Jones Day Webmaster innocently used imprecise language and the law firm truly was focused on Europe alone. Jones Day claims it's the latter, saying the statement was removed because it was confusing.

Then on Friday, Majoras said she will not recuse herself, arguing that such an action is not warranted. "My husband does not represent any party in the Google-DoubleClick matter," Majoras said in a statement. "He is in no way connected to the matter, nor are any of the parties to the matter otherwise currently his clients."

The subtext here is that the Electronic Privacy Information Center and the Center for Digital Democracy are trying to embarrass Majoras into recusing herself, which would remove a Republican vote likely to be more sympathetic to free market arguments. That would leave two Republicans and two Democrats left to vote.

The FTC is reviewing the proposed merger, which Microsoft and a band of pro-regulatory groups are hoping to derail it. The FTC could allow the deal to proceed, attempt to block it, or attempt to impose conditions. In Europe, antitrust bureaucrats said last month that they were conducting their own investigation and would make a decision by April 2, 2008.

Meanwhile, a top Republican in the House of Representatives is demanding that Google answer a barrage of questions about privacy, some of which are related to the proposed DoubleClick purchase. Rep. Joe Barton (R-Texas), a critic of the proposed merger, last month complained in a letter to Google CEO Eric Schmidt that the company had initially agreed to let his aides visit the Googleplex in Mountain View, Calif., but then didn't confirm a date.

Barton is the senior Republican on the House Energy and Commerce Committee, which has Internet regulation as one of its responsibilities. Most of Barton's 24 questions deal with what Google does with search queries, how long information is kept, what data will be merged with DoubleClick's, and how the company performs its partial anonymization of search results.

CNET readers seemed uninterested in the political intrigue, preferring instead to focus on Google's privacy policy.

"Lame partisanship aside, I welcome any investigation of Google and its excessively long data retention practices," wrote one reader to the TalkBack forum.

Tech of yesteryear
Putting aside the race to build tomorrow's killer tech for a night, many in the tech community gathered to celebrate what may be the best-selling computer of all time, the Commodore 64.

Hundreds of Silicon Valley's best and brightest came out to the Computer History Museum in Mountain View, Calif., to celebrate the machine's 25th anniversary. At the celebration Monday night, Commodore founder Jack Tramiel, who was the guest of honor during a rare public appearance, told the gathered crowd that the C64 sold between 20 million and 30 million units, a staggering number.

See more CNET content tagged:
DoubleClick Inc., law firm, antitrust, Electronic Privacy Information Center, Week in review


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Very Troubling
To almost anyone it would be obvious that they need to recluse themself in a similar situation. The only possible reason to review the situation with your chief ethics officer is if you wish not to recluse yourself but also are worried about violating the law. Such an individual should be fired immediately because they are not personally feel bound by ethical considerations.
Posted by shanedr (155 comments )
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Caught red handed!
They tried to bring about plausable deniability bt now they can not do that since the website is now copied as evidence.

This will not work.
Posted by inachu (963 comments )
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