Google wants cream, no cookies

GOOGLE is developing technology to try to appease critics who complain that its proposed acquisition of DoubleClick will lead to an erosion of online privacy, according to its chief executive Eric Schmidt.

Mr Schmidt also promised changes in the internet company's policies, saying Google would do whatever was necessary to quell a rising tide of complaints about lack of privacy that began with news of its planned $US3.1 billion ($3.7 billion) acquisition 10 days ago. "At the end of the day, people will be happy," Mr Schmidt said.

"That's because they have to be" or Google would lose both users and advertisers and its business would be at risk, he said.

Fears have been stoked by the potential for Google to build up a detailed picture of someone's behaviour by combining its records of web searches with the information from DoubleClick's "cookies", the software it places on users' machines to track sites they visit.

As the company that "serves", or delivers, the majority of banner ads seen by web users, DoubleClick's reach within its market is on a par with that of Google in the search business.
Mr Schmidt said Google was working on a way of handling cookies that would reduce concerns about the practice.

The technology has long been controversial, because many internet users do not realise their surfing habits are tracked.

Google has bowed to those concerns by not using cookies, though it has said it would change its policy after the DoubleClick acquisition.

"We have technology in that area that can make it much better," Mr Schmidt said, though he refused to give details of the technique before the company's discussions with regulators.
Besides privacy groups, the DoubleClick deal has also stirred unease among advertisers and other online media companies over the competitive advantage Google would gain from the vast amount of information it would have about its businesses.

Last week Mr Schmidt said that Google would consider arrangements to deal with those fears, such as keeping apart data about advertisers and media owners contained in Google and DoubleClick's systems.

While stoking fears about loss of privacy, greater use of personal data collected online could have benefits, from enhancing the personalisation of services to helping fight terrorism, he said.
"These are the conflicts of our age," he said.

"We're trying to find the right balance."