Bad press may affect Google more than FTC's $22.5M fine

09.08.2012
Although analysts say Google's $22.5 million fine from the FTC is a simple slap on the wrist, they argue that the publicity about it may still push the company to change its ways.

Ending an FTC investigation into allegations that Google used cookies and bypassed privacy settings to track people who use Apple's Safari browser, the company will pay what .

The settlement also mandates that Google disable all of the cookies it placed on affected users' computers.

"FTC spokespeople seem to be emphasizing that the $22.5 million is the largest fine ever and that it will send a clear 'don't mess with the FTC' message," said Dan Olds, an analyst with The Gabriel Consulting Group. "However, Google had more than $12 billion in pre-tax earnings in 2011, which is more than $33 million a day. That means the FTC's record-setting Google fine is the equivalent of a little over 16 hours of Google profits.

"When you look at the big picture, this FTC fine is more like a rounding error than a serious punishment," he added.

According to Olds, the fine is more akin to a traffic ticket than an arrest, not something that should leave a lasting mark.