Google Goes to Washington

The Atlantic has a short, interesting article about Google's Washington presence:

At the same time, many businesses overshadowed by Google have begun looking for political arguments that might slow its seemingly unstoppable ascent. “There is no company on the face of the planet that scares as many businesses as Google,” says Blair Levin, a telecom and media analyst at the financial-services firm Stifel Nicolaus. The most popular and potentially effective argument against Google is the charge that it has become a monopoly that needs reining in. (The political power of this criticism is increased by fears that Google will misuse the vast amount of personal data it has accumulated.) In late September, Congress held the first antitrust hearings concerning Google—the opening salvo in what is likely to be one of the most important business and policy stories of the next few years.

The computer world is in the midst of its next great transition, as many applications and services—word processing, spreadsheets, e-mail, data storage—migrate from the personal computer to the Internet. Success for all sorts of businesses will soon depend on whether customers have easy and fast access to these Internet-based applications. Because gaining primacy will involve winning battles over regulation and federal oversight, companies like Microsoft and the major cable and telephone companies are now squaring off against Google in an arena where it has never competed and they have: Washington.

Until recently, a company’s Washington strategy tended to evolve at the same pace as its business. As the company grew larger, it would add lobbyists and advisers to protect its interests. But as Microsoft grew more powerful in the 1990s, it mostly ignored politics. It had gotten to the top of the new economy without aid or interference from Washington—why change? Microsoft assumed the government posed no threat—until its competitors persuaded the Justice Department to launch an antitrust suit. Though the company avoided a breakup, its stock price stagnated for years.

Microsoft’s example illustrates a pro­blem that can plague any fast-growing tech company: You can control vast markets and terrify your competitors, but still be a Washington rookie. As the government focuses on Google, the city’s familiar machinery is gearing up for battle on the question of whether the company is the large but benign force for innovation its corporate slogan, “Don’t be evil,” suggests—or whether, like Stan [Google's T-rex corporate mascot], it’s a carnivore on the loose.

Beat the Press: Google to Allow People Mentioned in News to Respond

An interesting development from Google today. Starting now, the search engine is going to allow people who are mentioned in a news story to respond to it and have their responses posted within Google News (h/t Brian Clark):

Here's how the new system will work: people or organizations that are mentioned in news stories can submit comments to the Google News team, which will then display those comments—unedited—alongside the Google News links to those stories.

The new system will at first be deployed only within the U.S., but Google is open to expanding it to other regions if the trial goes well.

This raises a number of questions that the announcement does not attempt to answer, such as how Google will vet the comments to ensure they come from the claimed source (watch this space for the first "Google News punked!" stories in the following weeks). Google is also a backer of algorithm-driven solutions as opposed to those which require human interaction and don't scale as well. Vetting comments and verifying identities doesn't sound like the sort of thing which lends itself to an algorithm, but we'll assume Google has thought this through and has some sort of plan. Let's turn instead to the most interesting implication.

Once the new system is in place, Google News will feature something it has never had before: original content. There's a certain amount of "originality" in aggregating news sources from around the world and organizing them into easy-to-click topics, of course, but the content has all been owned by others, and some of those others have been less than happy about their inclusion in Google News.

If the new comments feature takes off and Google News becomes a central clearinghouse for those who want to respond to pieces in which they appear, the site's popularity would no doubt skyrocket. News junkies would have to visit Google News—and not any particular newspaper—to find out if, say, Barry Bonds objected to a characterization of him on the USA Today sports page.

Google, Paper Tiger?

Interesting news:

There was encouraging news for the growing army of Google-haters yesterday when a leading internet advertising researcher suggested that the search engine’s stranglehold on online promotions was looser than he had expected.

Bill Tancer, a research analyst at Hitwise, the internet research firm, said that eBay’s decision to pull all its advertising from Google in the US had had only a small impact on the “traffic” flowing from the search engine to the online auctioneer’s site.

Some 9.6 per cent of eBay visitors came from Google on Tuesday, the first full day that the boycott was in effect, compared with 10.6 per cent on the previous Tuesday, Mr Tancer said.

“Before I pulled the data, I was expecting a bigger drop given the drastic removal of sponsored listing ads by eBay,” he said.

He added that that the impact of eBay’s advertising withdrawal was reduced by the fact that 25 per cent of users visiting the internet auctioneer from Google do so after searching for eBay, rather than by clicking on one of the “sponsored links” that appear next to other search results.

The data suggests that Google may be less powerful than people thought, at a time when the search engine is seeking to widen its empire – and drawing fresh criticism almost every day as a result of its perceived growing dominance.

Overstated somewhat I believe. eBay's traffic from Google comes not from its ads, but from search queries. Were Google to boycott eBay in its search listings by reconfiguring its algorithms to demote eBay listings (in opposite fashion to what it does to promote Wikipedia entries), the auction site's traffic would decrease markedly.

Google Wants Your Info

Google's technological ambitions continue to grow. I have to admire their foresight even as its increasing scope makes me uneasy.

Google's ambition to maximise the personal information it holds on users is so great that the search engine envisages a day when it can tell people what jobs to take and how they might spend their days off.

Eric Schmidt, Google’s chief executive, said gathering more personal data was a key way for Google to expand and the company believes that is the logical extension of its stated mission to organise the world’s information.

Asked how Google might look in five years’ time, Mr Schmidt said: “We are very early in the total information we have within Google. The algorithms will get better and we will get better at personalisation.

“The goal is to enable Google users to be able to ask the question such as ‘What shall I do tomorrow?’ and ‘What job shall I take?’ ”

The race to accumulate the most comprehensive database of individual information has become the new battleground for search engines as it will allow the industry to offer far more personalised advertisements. These are the holy grail for the search industry, as such advertising would command higher rates.

Mr Schmidt told journalists in London: “We cannot even answer the most basic questions because we don’t know enough about you. That is the most important aspect of Google’s expansion.”

He said Google’s newly relaunched iGoogle service, which allows users to personalise their own Google search page and publish their own content, would be a key feature.

Top Five

1. After some rumors that Nicolas Sarkozy might be appointing the same type of people that got France into its current mess, some encouraging news: the new president has appointed a "socialist mugged by reality" to be his foreign minister.
   
   
2. Democrats in the Senate failed to pass another Iraq war cutoff bill with many of their own party voting against it, further signaling what I said earlier that withdrawing from Iraq. If Republicans stick to their principles, they have the upper hand on this issue.
   
   
3. Roommates.com was found guilty of violating the Fair Housing Act by providing means for users to manually choose to exclude potential roommates depending upon categories such as race, sex, and sexual orientation. This was a Ninth Circuit ruling, however. Nathan Goldman thinks the ruling has big implications. Eugene Volokh does not. Expect appeal in any case.
   
   
4. Google is in the news today, successfully defending itself against a lawsuit filed by porn publisher Perfect 10 over the use of small thumbnails used on Google's Image Search function. The case is a victory for fair use and should be hailed. Here's hoping that SCOTUS upholds it.
   
   
5. The Senate has worked out an amnesty bill for illegal immigrants. I wonder to what degree the conservative movement will accept it?
   

YouTube 'Very Close' to Copyright Filter

Another interesting YouTube development:

Google is very near enacting a filtering service that would prevent copyright content from being uploaded to video-sharing site YouTube, CEO Eric Schmidt said Monday.

Schmidt made the comments to about 300 people here at the National Association of Broadcasters conference during a one-on-one interview with John Seigenthaler, a former reporter with NBC's "Nightly News."

The new system, which Schmidt called Claim Your Content, will automatically identify copyright material so that it can be removed, Schmidt said.

"We are very close to turning this on," Schmidt said.

The filtering system was supposed to have launched last year at YouTube, which Google acquired for $1.6 billion in October 2006. Delays in rolling it out have angered movie and television executives. Executives at NBC and Viacom have accused Google of dragging its feet on preventing YouTube users from uploading clips from hit shows and movies.

Network executives accused Google of stalling so YouTube could reap the big traffic that professionally-created shows generate. Viacom filed a $1 billion lawsuit against Google last month and accused Google of massive intentional copyright infringement.

"Ah Viacom," Schmidt said. "You're either doing business with them or being sued by them...we chose the former, but ended up the latter."

I highly doubt that the filter will be effective, especially as time goes by and savvier users figure out how to circumvent it.