In February, I posted a link to a story that found Google was willfully usurping browser cookie settings in iPhones and iPads in order to track users.
The Federal Trade Commission just punished them:
Google Inc. has agreed to pay a record $22.5 million civil penalty to settle Federal Trade Commission charges that it misrepresented to users of Apple Inc.’s Safari Internet browser that it would not place tracking “cookies” or serve targeted ads to those users, violating an earlier privacy settlement between the company and the FTC.
Now, to Google, $22.5 million is a cup of coffee. However, the public implications are far broader. This case, coupled with other recent behavior, acts to erode Google’s brand trust. Millions of people do not mind that they are the product packaged for Google’s customers - the advertisers. However, when privacy is so recklessly disregarded, users might just decide they are no longer for sale.