CASE 107
Google: The Quest to Balance Privacy with Profit
CASE NOTES FOR INSTRUCTORS
Google started off as an Internet search engine that found its success in the use of an algorithm that
ranked searches according to relevance. Since then Google has made a path for itself in other areas such
as social networking, advertising, and mobile phones. Because of Google’s unique position as the top
Internet search engine and because it has grown to be such a large company, it has had to deal with
several ethical issues such as copyright infringements, Internet privacy, and government censoring, and
anticompetitive behavior. For instance, the European Union levied a $2.7 billion fine against Google for
violating European antitrust laws.
This case deals mostly with the privacy concerns that have become an issue for Google. It highlights
some of the ways in which Google is striving to be a good corporate citizen, including its wide-scale
benefits for employees and its sustainability initiatives. Google has consistently been ranked as one of the
best companies to work for. However, privacy has become a major ethical issue for Google. For instance,
Internet searches made by users are recorded forever. Google claims that after a certain amount of time
the information cannot be linked to the person who made the search, but in some cases the information
can be traced back to the user. Another example discussed is that of self-censorship in China, which
conflicts with Google’s corporate principles. The tracking of users is another privacy issue that arose in
some of Google’s products, namely GPS tracking on the Android mobile phone and Internet. Privacy has
become such a major issue in Europe that Europe adopted a right to be forgotten law in which citizens can
successfully petition Google to remove personal content that is deemed no longer relevant, excessive, or
inadequate. If Google refuses, the issue can be taken to a local data protection authority.
In each of these instances, Google has claimed that privacy is a serious matter. However, privacy
incidents have continued. For instance, users found that when they joined Google Buzz, their contact lists
on their Gmail accounts were transferred to Google Buzz and made public. This sparked investigations by
regulators and resulted in mandatory privacy audits for Google. This case therefore gives students a
unique look into how a company struggles to be an ethical organization and yet still faces a number of
ethical issues, particularly in an industry where there is not yet many government regulations determining
how marketers can use or collect information online.
QUESTIONS AND DISCUSSION
1. Has Google implemented a strategy that serves all stakeholders?
Students’ answers will vary. It is impossible to please everybody, so more than likely there will be
some stakeholders that dislike Google no matter what. However, Google has done a good job of
meeting the needs of certain stakeholders like its employees. The corporate culture that Google has
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benefited by Google’s programs and initiatives, such as investments made to solar energy, biodiesel
trucks, and transportation services. The free services that Google provides—such as Gmail, Google
However, it would seemseems that Google could can improve its privacy practices. Privacy has
become such an issue that Europe adopted a right to be forgotten law where European citizens can
petition Google to remove certain types of personal content from showing up in online search
2. How can Google respect privacy and yet still maintain its profitability?
Students might argue that giving up some privacy is the price users must pay in order to receive the
many benefits of using Google’s services without paying. Because Google relies on revenue from
However, many students will also likely believe that Google can improve its privacy while
maintaining profitability. Students’ answers will vary on this point. However, they might argue that if
3. How will increasing global regulation of privacy affect Google’s operations?
Government regulations of the Internet would change the way Google does its advertising and would
greatly affect its profits. For instance, limiting the amount of information Google could collect or how
Google is being challenged by increasing Internet regulation in Europe. In 2014 the EU passed its
“right to be forgotten” law, requiring Google to remove content that users deem irrelevant,
inadequate, and excessive at the user’s request. Google was forced to set up a process by which it
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ADDITIONAL RESOURCES
Google privacy policy: http://www.google.com/policies/privacy/
Critics criticize Google privacy settlement:
http://www.pcworld.com/article/2047323/privacy-groups-criticize-proposed-85-million-google-se
ttlement.html
Gmail and privacy:
http://www.cbsnews.com/8301-205_162-57598496/google-gmail-users-have-no-expectation-of-p
rivacy/
Google and the “right to be forgotten”:
http://www.nytimes.com/2015/08/06/technology/personaltech/right-to-be-forgotten-online-is-pois
ed-to-spread.html?_r=0\
Recommendation to “break up” Google businesses in Europe:
http://fortune.com/2014/12/05/google-european-commission-antitrust/
Google’s $2.7 billion fine:
http://money.cnn.com/2017/06/27/technology/business/google-eu-antitrust-fine/index.html