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@andreworlowski: Nothing says freedom like getting away with it: Google quietly takes gag off Mississippi AG after wrecking ads probe

July 15, 2016 Comments off

Americans are freedom loving people, and nothing says freedom like getting away with it.

From Long Long Time, by Guy Forsyth

Andrew Orlowski reports in The Register:

Google has, without fanfare, dropped its legal action that muzzled an investigation into the ad giant’s conduct by the State of Mississippi.

The state’s elected attorney general, Democrat Jim Hood, has taken on Wall Street, the tobacco industry and the KKK, but even he must have been surprised by Google’s 44-page restraining order [PDF] in response to a wide-ranging 79-page subpoena [PDF] he filed against the corporation in 2014….

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The subpoena into Google’s business practices focussed on whether the company was abiding by the terms of a 2012 non-prosecution agreement it signed with the US government’s Food and Drug Administration and Rhode Island State after a multi-agency sting operation.

Google agreed to forfeit $500m as part of that deal, which raised eyebrows for several reasons – one being that $230m of the forfeiture found its way to Rhode Island.

Hood pointed out that the four-year sting operation run against Google by a combination of federal agencies before a federal grand jury in Rhode Island showed that Google and its senior management team right up to Google’s CEO Larry Page was complicit in violating the Controlled Substances Act to the point of helping the bad guys get around Google’s own filters.  Google paid a $500,000,000 forfeiture for those drug violations for advertising the sale of prescription drugs–not for what the advertisers did, but for what Google did.

Sorting through more than four million documents [that Hood was trying to get released by his subpoena], prosecutors found internal emails and documents that, they say, show Mr. Page was aware of the allegedly illicit ad sales. Under this week’s $500 million settlement, those emails won’t be released, avoiding the possibility of disclosure at trial.

“Larry Page knew what was going on,” Peter Neronha, the Rhode Island U.S. Attorney who led the probe, said in an interview. “We know it from the investigation. We simply know it from the documents we reviewed, witnesses that we interviewed, that Larry Page knew what was going on.”  [Which is why Hood wanted to get at those documents.]

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According to Google’s lawyer Boris Feldman speaking in open court on the record that the Department of Justice apologized to Google for the statement by Mr. Neronha (Transcript of hearing with Feldman statement at pp 11-12):

“The U.S. attorney in Rhode Island went off the reservation and gave a long interview about all the evidence and why it was he was so excited about the case,” lawyer Boris Feldman told the judge at a Delaware state court. “It ended up being so far off the reservation that the Justice Department apologized to Google for it and muzzled him.” (emphasis mine)

The rumor is that the apology was engineered by Amazon board member Jamie Gorelick, the former Clinton Deputy Attorney General who preceded Eric Holder (later Obama’s Attorney General who was in office when the apology was tendered).

In another Googley twist, Ms. Gorelick’s former protégé (special counsel to the deputy attorney general), Beth Wilkinson, was brought in to oversee the Federal Trade Commission’s antitrust non-investigation investigation into Google for which it is now being prosecuted in Europe.  Why?  Because they just don’t have enough career prosecutors in the FTC who would let Google off the hook, I suppose.  But I digress.

Ms. Gorelick represented Google in the negotiation of the deal with Holder that let Google executives keep the drug case away from a grand jury and use $500,000,000 of the shareholders’ money to pay for their own violations of law for which Google’s board and executive team was sued by stockholders (In re Google Inc. Shareholder Derivative Litigation).

Hood also asked about a curious section of the settlement of the shareholder lawsuit:

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So Google demonstrated again that the only government that seems to be able to control them is…maybe…the European Commission.

Corporate Astroturf and Manipulation of Media Messages by @SharylAttkisson at TEDxUniversityofNevada

February 7, 2015 Comments off

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Uncle Sugar Shows Us a Regular Guy on a Lobbying Trip

As we enter the a new session of Congress, we can anticipate being assaulted by the combined forces of Google, Facebook, Pandora and SiriusXM, the Electronic Frontier Foundation, Public Knowledge, the Digital Media Association, the Computer & Communications Industry Association and its host of “studies”, the Cato Institute, the Heritage Foundation, the Stanford Institute for Internet and Society, the Berkman Center, the Consumer Electronics Association, the Internet Association and of course, the National Association of Broadcasters.

What’s different about the current state of play for artists, songwriters, producers is that our side really doesn’t have anything like the complex and systematized network of 501(c)(3)s, cy pres awards, special interest groups and academics that are on Google’s payroll and increasingly on the payroll of Facebook and the new Internet Association (which itself spends approximately $400,000 a quarter on lobbying alone).

I highly recommend you read this article by Tom Hamburger and Matea Gold from the Washington Post, “Google, once disdainful of lobbying, now a master of Washington influence.”  You’ll begin to get the idea that Google spends so much money on “astroturf and manipulation of media messages” that it had to start finding ways to create other ways to spend the money.  Hamburger and Gold lead their reporting with this example:

In May 2012, the law school at George Mason University hosted a forum billed as a “vibrant discussion” about Internet search competition. Many of the major players in the field were there — regulators from the Federal Trade Commission, federal and state prosecutors, top congressional staffers.

What the guests had not been told was that the day-long academic conference was in large part the work of Google, which maneuvered behind the scenes with GMU’s Law & Economics Center to put on the event. At the time, the company was under FTC investigation over concerns about the dominance of its famed search engine, a case that threatened Google’s core business.

Indeed, this manipulation has gotten so bad, the judge in Oracle v. Google required the parties to make court filings listing all the public commenters on the case which has come to be called the “Google Shill List” which you can read here.  The Trichordist has an excellent “connect the dots” post showing Google’s history of financing those filing “friends of the court” briefs in Google’s efforts to stop Mississippi Attorney General Jim Hood’s investigation into Google’s violation of various laws.  All this in the aid of what the EFF might call “obfuscation”–Google and its “amici” would have you believe that Hood’s case is just about the acts of people using Google or its products, for which Google has a variety of statutory protections.  Nothing to see here, move along.

But as Hood points out, the four-year sting operation run against Google by a combination of federal agencies before a federal grand jury in Rhode Island showed that Google and its senior management team right up to Google’s CEO Larry Page was complicit in violating the Controlled Substances Act to the point of helping the bad guys get around Google’s own filters.  Google paid a $500,000,000 forfeiture for those drug violations for advertising the sale of prescription drugs–not for what the advertisers did, but for what Google did.

Sorting through more than four million documents, prosecutors found internal emails and documents that, they say, show Mr. Page was aware of the allegedly illicit ad sales. Under this week’s $500 million settlement, those emails won’t be released, avoiding the possibility of disclosure at trial.

“Larry Page knew what was going on,” Peter Neronha, the Rhode Island U.S. Attorney who led the probe, said in an interview. “We know it from the investigation. We simply know it from the documents we reviewed, witnesses that we interviewed, that Larry Page knew what was going on.”

Subsequently, Google’s lawyer said in open court that the Department of Justice apologized to Google for the statement by Mr. Neronha (Transcript of hearing at pp 11-12):

“The U.S. attorney in Rhode Island went off the reservation and gave a long interview about all the evidence and why it was he was so excited about the case,” lawyer Boris Feldman told the judge at a Delaware state court. “It ended up being so far off the reservation that the Justice Department apologized to Google for it and muzzled him.” (emphasis mine)

So when Hood served his subpoena, you could easily imagine Larry Page telling Google’s lawyers to MAKE IT STOP!  I’M RICH, I’M ENTITLED, HE CAN’T DO THIS TO ME!

MUZZLE HIM!

Because, the U.S. Attorney for Rhode Island told the Wall Street Journal that Page was implicated.  Google is now settling shareholder class action cases against Larry Page and the Google senior management team and board members alleging that Page is implicated.  There is a potential for a host of criminal violations at the State and federal level from consumer fraud, to RICO, to Sarbanes Oxley.  And the best Google can come up with for friends of the Court are the usual suspects and trade groups?  When the federal Justice Department is issuing apologies to multinational corporations, it’s left to state law enforcement officials to seek justice.

Just like the copyright battle in the Congress yet to come this year, Attorney General Hood’s investigation is a significant upping of the ante in these cases.  Hood’s case is one of the few times that an American multinational corporation tried to muzzle a criminal investigation into its own practices before it ever started.

And that’s worth bringing to bear a whole lot of astroturf just the copyright law–that in Google’s case presents a host of loopholes on which it’s built its business.

As the Trichordist points out, the venerable public interest watchdog “Public Citizen has released a study called Mission Creepy a great guide to Google’s labyrinthine influence buying.”  Even if you skim that report, I think you’ll agree we haven’t seen as comprehensive a takeover of the federal government, tax exempt organizations and the academy since the days of John D. Rockefeller, maybe not ever.  No wonder the Department of Justice is apologizing to Google.

But it’s not just controlling government officials that’s the problem.  It’s the combined work product of all this influence buying that is truly insidious.

How does this work?  This video by award wining investigative journalist Sharyl Attkisson is an excellent discussion by the former CBS news reporter about the new media world we live in.  Ms. Attkisson uses the example of pharmaceutical companies doing a variety of things like manipulating search results and controlling Wikipedia.  Ahem….

Here is a link to the Columbia Journalism Review article that Ms. Attkisson references:  Bitter Pill: How the press helps push deadly prescription drugs, sometimes with deadly consequences.

For State Attorneys General, the Human Trafficking Investigations Should Start at YouTube

January 23, 2014 Comments off

January is National Slavery and Human Trafficking Awareness Month.  Florida Attorney General Pam Bondi is one of the 47 state Attorneys General who is leading the AG’s initiative against human trafficking of young girls, especially online:

General Bondi emphasizes the need to make parents aware of the dangers that young people face online that parents may be completely unaware of:

[W]e recognize that awareness is a key component to stopping human trafficking, which is why we launched a statewide campaign called “From Instant Message to Instant Nightmare.” The campaign is geared toward informing parents and children about safe Internet use to prevent human traffickers from using the Internet to recruit victims.

The 47 Attorneys General would do well to take a page from their fellow AG, Jim Hood, the Mississippi Attorney General who is pursuing Google for violating Google’s nonprosecution agreement with the U.S. Department of Justice and profiting from the sale of advertising for illegal drugs online.

Nowhere is Google’s involvement with trafficking more obvious and easier to fix than in Google’s YouTube property.  Here’s an example.  Try searching for “sugar daddy” on YouTube and you’ll likely come across this video by “Vicky Darling” in the hundreds of thousands of search results:

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Vicky, it seems, is addicted to her Sugar Daddy and has a video that tells girls how to get “out of the broke bitch statistic list” by clicking on a link embedded under “Vicky’s” YouTube video:

You will also find videos like this one “Dating 101: Sugar Daddy/Baby Relationships”:

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And since it’s Google, the video is monetized with pre-roll from major brands advertising, this time by Outback Steak House:

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If you click on some of the sugar daddy videos, I think you will agree that many come very close to openly recruiting young girls–and I haven’t found any that aren’t directed at women–into “sugar daddy” relationships under the guise of “dating advice”.

One recurring theme in these sugar daddy videos is sex for tuition as a way to avoid taking on student debt.  Young undergrad working a minimum wage job taking on hundreds of thousands in debt can magically make her financial problems all go away if she finds a sugar daddy.

YouTube also has clips from news programming that is not solely devoted to the “how to”.  This local news clip focuses on the “sex for tuition” theme:

Given that YouTube holds itself up as the replacement for television, you have to ask yourself how you would feel if you found your daughter, sister, niece or cousin watching the “Sugar Daddy Channel”.

And this is just one way that YouTube’s lack of editorial control feeds into the worst in society.  And it’s being pumped into your home right now through Google’s various products, including their educational apps, mobile apps and Internet enabled televisions.

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