This past week, Yahoo! caught some flak for cooperating with the DoJ's request for search data, while Google got some good press. From what I've read, the story's been given quite a spin, so here are some thoughts (disclaimer: I work for Yahoo! but not in Search and I don't know any more than what's been reported in the media. I do, however, have not-yet-vested interest in YHOO stock prices):
- Spin 1: Yahoo! (and others) simply rolled on their backs and cooperated with Big Bro. If the official statements from Yahoo! and others are to be believed (and I think they can be believed), this was not the case. They did cooperate, yes, but only to a limited degree, and no personally identifiable data was released. I think that's an important distinction to make.
- Spin 2: It's a slippery slope from here... Um, no. In between giving the government data with no personally identifiable information, and giving them data with identifiable information lies not so much a slope, but a big cliff. If we're at the point where companies like Yahoo! and Google hand over personally identifiable data on millions of private citizens to the government, we've gone over the edge and it's time to stop talking and start packing. But unlike slipping down a slope, you know when you've fallen off a cliff.
- Spin 3: Giving the government data sets a dangerous precedence Perhaps so. But Google went all adolescent on us, and they got themselves sued by the DoJ. What happens if, on the off chance, the DoJ wins? It sets a legal precedence, which is far far more dangerous than this "Oh, but Yahoo! gave us this data once..." type precedence.
- Spin 4: Google resisted the government's request out of ideological righteousness, because Google can't do evil Granted, that was a brilliant PR move, but anyone who thinks they're doing this to be "good" might be under the influence of the Google Reality Distortion Field. Their decision was likely based on technical and business reasons (1. they have tons of data, 2. they're very secretive), at least as much as on moral reasons.
Having said that, this turned out to be a huge PR loss for Yahoo! and others. I've seen a number of people comment on how they are less likely to use Yahoo! over Google now (if they ever did use Yahoo!, of course). Yes, such people are misguided in their reasoning, but ignorance happens, and Yahoo! may suffer for it in terms of decreased search traffic -> decreased ad revenues and market share -> lower stock prices.
Then again, this may not have been a clear victory for Google either. After being heroically defiant, they got sued by the DoJ, which may have caused the sharp drop in GOOG prices. And depending on how the court case ends up, they may ultimately end up giving up data after all, or possibly set a worse legal precedence. So the jury, quite literally, is still out on this one. I guess we'll be hearing more.
Posted Mon, February 20, 2006 15:50 by 212.2.100.246@212.2.100.246
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