Google sees privacy threats
By Eric Auchard

http://news.yahoo.com/s/nm/20060809/tc_nm/google_privacy_dc_3

SAN JOSE, California (Reuters) - Web search leader Google Inc., which 
stores vast amounts of data on the Web surfing habits of its users, sees 
government intrusions rather than accidental public disclosures of data 
as the greatest threat to online privacy, its chief executive said on 
Wednesday.

CEO Eric Schmidt told the Search Engine Strategies industry conference 
here that Google had put all necessary safeguards in place to protect 
its users' personal data from theft or accidental release. His remarks 
followed last weekend's discovery by online privacy sleuths that AOL, a 
key Google search customer, had mistakenly released personally 
identifiable data on 20 million keyword searches by its users.

But Schmidt said a more serious threat to user privacy lay in potential 
demands on Google by governments to make the company give up data on its 
customer's surfing habits.

"You can never say never," Schmidt said during an onstage interview with 
Web search industry analyst Danny Sullivan.

"The more interesting question is not an accidental error but something 
where a government, not just the U.S. government but maybe a non-U.S. 
government would try to get in (Google's computer systems)," Schmidt said.

Google won kudos earlier this year from privacy advocates for going to 
court to block a U.S. government request for data on Google users. 
Schmidt warned that such intrusions could occur again.

Google operates one of the world's largest collections of computer 
databases at its Mountain View, Calif. headquarters. It asks users for 
permission to store personal data, which it uses to speed Web searches 
to help advertisers target ads.

But Google also operates computer data centers in other countries, 
including China, where its entry into the market earlier this year 
stoked controversy over the risks of doing business under China's 
censorship laws.

Sullivan asked Schmidt why Google does not purge its users' data from 
its computers every month or two to guard against building up too much 
history of any Web user's search habits.

"We have actually had that debate," Schmidt said, adding that security 
protections Google has put in place would make it very difficult, if not 
impossible, to steal customer data. He said keeping users' trust was 
Google's most essential mission.

AOL, the online unit of media conglomerate Time Warner Inc. , apologized 
on Monday and said it had launched an internal probe into how a research 
division of the company mistakenly released the data on its Web site two 
weeks ago.

The trove of personal data continues to circulate on the Web, where it 
can be downloaded and probed for details on user interests.

Release of the data on searches by about 658,000 anonymous AOL users 
over a three-month period has provoked a firestorm of criticism over the 
risks created by collecting vast stores of personal data as many online 
companies do, including Google, Microsoft, Yahoo, Amazon.com.

Even though the users' names are not attached to the data, they can be 
identified by the personal nature of many Web searches.

"It is obviously a terrible thing," Schmidt said of the AOL data breach. 
"The data that was released was obviously not anonymized enough."

He said Google has very sophisticated security plans to protect its 
databases. The federal Sarbanes-Oxley law also requires companies to 
have demonstrable procedures for protecting against not just external 
threats but also the risk that a company insider could release Google 
data, he said.


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