Republic of the Philippines

Commission on Higher Education

Polytechnic University of the Philippines
Sta. Mesa, District of Manila

MINI CASE STUDY

GOOGLE- DON’T BE EVIL

November 24, 2023

SUBMITTED BY:

Epres, Francis Angela B.

Cornel, Chenie
 Republic of the Philippines
Commission on Higher Education
Polytechnic University of the Philippines
Sta. Mesa, District of Manila

TABLE OF CONTENTS PAGE NO.

TITLE PAGE--------------------------------------------------------------------------------------------------i
TABLE OF CONTENTS-----------------------------------------------------------------------------------ii
ABSTRACT---------------------------------------------------------------------------------------------------1
INTRODUCTION--------------------------------------------------------------------------------------------1
SHORT SUMMARY----------------------------------------------------------------------------------------2
ALLEGATIONS FOR GOOGLE-------------------------------------------------------------------------3
SHORT SUMMARY----------------------------------------------------------------------------------------3
Search Engine Manipulation-------------------------------------------------------------------3
Data Privacy and Personal Protection-------------------------------------------------------3
Tax Avoidance-------------------------------------------------------------------------------------4
Market Dominance--------------------------------------------------------------------------------4
Excessive Dependence on Online Advertising---------------------------------------------5
DEFENSE OF GOOGLE----------------------------------------------------------------------------------5
Defense of Google from Search Engine Manipulation-----------------------------------6
Defense of Google from Date Privacy and Personal Protection ----------------------7
Defense of Google from Tax Avoidance ----------------------------------------------------7
Defense of Google from Market Dominance------------------------------------------------8
Defense of Google from Excessive Dependence on Online Advertising-----------12
CONCLUSION---------------------------------------------------------------------------------------------12
REFERENCES---------------------------------------------------------------------------------------------13
 ABSTRACT

In the current era of intense commercial competition, corporations are required to

adhere to all regulations and guidelines in order to operate their enterprises in a lawful
manner. Google is one of the corporations facing claims for not following these
regulations. The reasons behind the EU's unhappiness with Google and the publishers'
problems against Google will be addressed in the following list of allegations and in
conclusion. This case study aims to provide a defense for Google against all claims made
by publishers and the European Union (EU).

Key words: unethical, success, allegations

INTRODUCTION

Google's success is due to its great products, user-friendly interfaces such as

Chrome and Android, and its position as the leading location for users looking for
solutions. This is consistent with advertisers' advertising spending, resulting in significant
financial resources and enabling Google's success in other companies. However, despite
all of Google's success, the company has faced numerous challenges and allegations.
Some questions about Google. Is Google evil?

Running a search company in a world that is becoming more social is already

challenging. The situation becomes more severe when anti-trust officials accuse you of
utilizing your dominant position in search to unjustly and unlawfully favor your own items
over those of your competitors. Google executives, who often pride themselves on their
company's informal motto, "Don't Be Evil," are now facing accusations of embodying that
same evil, and these accusations are justified. Considering the ongoing accusations that
the internet giant intentionally committed "the most significant violation of privacy in
history" and "one of the largest infringements of data protection laws ever witnessed,"
what alternative explanation can be considered?
 By what authority have these emerging media enterprises been granted the ability
to encroach upon our privacy without our consent or awareness, thereafter clandestinely
retaining the information until they can ascertain how to derive financial gain from it at
future times? The likelihood of this scenario became more apparent recently when
European authorities, who were increasingly frustrated, issued a clear and final demand
to the corporation. They said that the company must alter its deceptive behavior about its
anti-competitive practices in search, online advertising, and smartphone software, or else
face the repercussions. Regulators in the United States are ready to imitate or mimic a
similar action. In this article, we shall defend Google against all of the challenges and
claims that they were having.

SHORT SUMMARY

Google, a global search engine, has faced criticism from the European
Commission, national governments, and customers. The company's core products, such
as Search, Android, Maps, Chrome, YouTube, Google Play, and Gmail, have over 1
billion monthly active users. The company is ambitious, aiming to extend internet access
to further 5 billion people and sees itself as a benefactor of mankind, helping people learn,
start businesses, grow, and prosper in ways they simply coil not without an internet
connection.

Google's slogan in the first decade of the millennium was "Don't be evil." However,
the company has faced fierce criticism from the European Commission, national
governments, and customers. In 2017, the European Commission fined Google €2.4
billion for illegally abusing its dominant position as a search engine by giving prominence
to its own shopping comparison site of rivals. Google had 90 days to stop the abuse or
face penalty payments of up to 5% of daily worldwide turnover.

Google has also clashed with the Commission over privacy and the protection of
personal data. In Europe, Google has been accused of tax avoidance by shifting profits
to low-tax countries such as Ireland. Allegedly, Google was billing 92% of its non-US sales
to Ireland. The chair of the UK Parliamentary Public Accounts Select Committee said that
the company was "devious, calculated, and, in my view, unethical."

Publishers have problems with Google, with the Guardian withdrawing ads when
it found them on YouTube videos posted by extremists. Axel Springer, a German
publishing company, supported the EU action against Google, citing Google's market
power and publishers' increasing dependence on it for online advertising and traffic
generated by it. The company's CEO saw the company as a threat to their values,
understanding of humanity, worldwide social order, and the future of Europe.

ALLEGATIONS FOR GOOGLE

• Search Engine Manipulation

In 2017, the European Commission imposed a fine of 2.4 Billion Euros on Google for
engaging in illegal practices by using its dominant position as a search engine. This was
done by prioritizing its own shopping-comparison site above its competitors. The
corporation leveraged its dominant position in the market to acquire influence in another.
The company has been said to have exerted influence over Google's generic search
engines, leading to the demotion of its competitor's comparison shopping services.
Empirical data indicates that competing services with high rankings are consistently
positioned lower on Google's search results, often relegated to the fourth page, so
significantly reducing the visibility of these rival shopping services. Google has been
accused of engaging in preferential treatment of its own products and services by giving
them higher priority in search engine results. Google was given a 90-day deadline to
cease the abusive behaviour or else it will be subject to penalty payments up to a
maximum of 5 percent of its daily global revenue.

• Data Privacy and Personal Data Protection

Google has faced conflicts with the European Commission on privacy and the
safeguarding of personal data. This has occurred as a result of Google using personal
information to propose connections through its Buzz service, which has led to a breach
of users' trust and privacy. The firm collects location data from mobile users through its
Android services, even when the location services are disabled. The company's capacity
to monitor user behaviour and preferences across its wide array of services has raised
concerns about the ethical use of data and potential encroachments on user privacy. This
also exposes a susceptibility in privacy protection that governments can leverage to
surveil confidential discussions. The company's services encompass the gathering and
analysis of extensive quantities of user data, including as search queries, emails, and
mobile app usage, frequently without users' awareness or explicit agreement.

• Tax Avoidance

Google has faced allegations of engaging in tax avoidance in Europe by transferring revenues
to nations with lower tax rates, such as Ireland. According to the Public Accounts Committee in
2012, Google was purportedly attributing 92 percent of its revenues outside of the United States
to Ireland for billing purposes. In order to evade UK corporation tax, the company has put forth an
unsubstantiated claim, contending that its sales to UK clients occur in Ireland, despite possessing
undeniable evidence that the majority of its sales revenue is really derived from within the UK. In
2011, Google's Ireland sales generated revenues of €396 million from the services rendered by
its 1,300 employees. However, the company only paid €6 million in corporation tax. These
services encompassed product promotion, client education and training, and ensuring product
functionality for UK consumers. The complex corporate structure has adversely affected Google's
brand and undermined trust in the United Kingdom.

• Market dominance

refers to the position of a company or product in a certain market where it has a

significant advantage over its competitors. It signifies the ability of a company to control
a large portion of the Statista's 2018 data reveals that Google dominates the market in
the EU, Brazil, and India with a market share exceeding 90%, while in the USA it holds
approximately 80%. This significant market dominance gives Google an unfair edge over
competitors such as Yelp. Since at least 2008, Google has consistently held a strong
position in the general internet search markets across the European Economic Area
(EEA), as determined by the European Commission's investigation. Evidence indicates
that Google has used its dominant position in the market by granting its own comparison
shopping service an unlawful advantage. As a result of Google's demotions, there was a
substantial decrease in traffic to competing comparison shopping businesses. These
circumstances have generated apprehensions over anti-competitive conduct, leading to
legal disputes against the corporation due to its significant control over the market.

• Excessive dependence on online advertising

Since the website functions as an enterprise that operates exclusively over the
Internet, it significantly depends on online advertising. One of its website partners is
Google Ads (formerly called Google AdWords), which allows Google to generate revenue
by distributing media for other brands. This is a mutually beneficial arrangement in which
the advertised companies receive increased visibility and the search engine generates
revenue from the brands' investments.

Excessive advertising can impede users' ability to read information, prompting Google to
develop measures to reduce its dependence on ad revenue. Its non-advertising revenue
has grown significantly from $0.8 billion in 2009 to $20.5 billion in 2019 (Richter, 2019).
This demonstrates the website's ability to generate profit from alternative sources and
suggests that Google may continue to experience consistent growth.

DEFENSE OF GOOGLE
There is a proverb that states, "The only way to completely avoid criticism is by
refraining from taking any action, expressing any opinions, and remaining inconspicuous."
It suggests that in order to prevent others from criticizing or criticizing you, you should
abstain from taking action, expressing your ideas, and pursuing your goals. Regarding
Google, it is undeniable that Google has significantly enhanced convenience and
efficiency for both students and workers. Google's mission is to organize global
knowledge and ensure its widespread utility and accessibility. Search simplifies the
process of locating a diverse array of information from many sources. Some information
is fundamental, such as the precise measurement of the Eiffel Tower's height. According
to Google, as stated in the article, "Facilitating the success of others by developing
platforms is a significant aspect of our identity...The potential to enhance the quality of life
on a vast level is boundless, as there are individuals worldwide whose lives we can
enhance on a daily basis by providing them with access to information in their households,
educational institutions, and mobile devices. This assertion is currently observable and
evident in the present condition. Nevertheless, among Google's triumphant
achievements, allegations and censure emerged.

Google has faced intense criticism from the European Commission, national
governments, and customers regarding its manipulation of search engines, privacy and
protection of personal data, tax avoidance, market dominance, and over-reliance on
online advertising. Now, let's examine how Google rectifies situations.

• Manipulating Search Engines

a. Google was penalized €2.42 billion by the European Commission for violating EU
antitrust laws. By illegally providing its comparison shopping service, another Google
product, with an unfair edge, Google has exploited its market dominance as a search
engine

If being asked I think Google have the right to do so, because it's their platform,
however I also get the point of the EU Commission that it's unfair to other rival company
of Google. I agree on what the Commissioner Margrethe Vestager, who oversees
competition policy, stated: "Google has developed a number of cutting-edge products and
services that have improved our lives. That's a positive thing. However, Google exploited
its market dominance as a search engine to promote its own comparison shopping
service in its search results while devaluing those of rivals. What Google did violates EU
antitrust laws because it prevented other businesses from competing fairly and from innovating.
More significantly, though, it prevented European consumers from having access to a wide range
of services and the full advantages of innovation."

In February 2014, Google made a proposal to address the issues raised by rival
retail search engines. The solution is to include Others As Prominently. This was done in
order to display listings from other shopping search engines next to its own. Sounded fair
to me, but other businesses complained, and trade organization Fair Search even called
it "worse than nothing." Eventually, the proposed deal fell through. The artificial
"Alternatives" barrier between Google's own product listings and those that lead to other
shopping search engines may be divided if the aforementioned plan were reshaped.

Google proposes a lot of Possible including Close Google Shopping. It's likely that
very few Google users ever visit the Google Shopping UK website to browse or do
searches. Heck, it's more common for users to just search on Google and receive
shopping listings—which are ads—mixed in with the primary search results, even for the
far more developed Google Shopping website in the US. Another one is by Changing The
Web Search Algorithm.

If there is a solution, it probably depends on resolving the initial accusation. In the

event that Google was to provide rival retail search engines with greater exposure within
its ad space, they would probably see growth — provided that they are willing to pay for
it, as has been the case for competitors outside of Google as well. The Google "free ride"
has become less and less for everyone. See also: Facebook.

As an alternative, Google may alter its algorithm to increase the likelihood of rival
shopping websites showing up in its online search results, as they formerly did. Think
about this "DVD players" search once more, but concentrate on the results from the online
search. It's to prove that Google is providing solutions and compromises to resolve the
issue.

Additionally, I agree on what Grant Ingersoll, the co-founder and CTO of Lucid
works, a company that focuses on AI-powered search, said. He mentioned that regarding
the need for a white box search engine, Ingersoll was dubious. Would the average
consumer who is drowning in information and is just interested in finding the solution they
need want it? Most likely not," he stated. Does it really matter why the computer selected
a recipe for barbecued chicken if you're looking it up? The recipes are either to your taste
or not."

If you're not into Google, there are other search engines available. Microsoft offers
Bing, which is a perfectly good search engine. For those who value privacy, DuckDuckGo
has built its entire business on being the search engine that doesn't put you in a bubble,
doesn't personalize results to you, and tries to be more transparent about what's going
on. In fact, a significant portion of DuckDuckGo's code base is open source."

• Privacy and Protection of Personal Data

Being a big business, Google has a lot of dangers and moral dilemmas that it needs
to deal with all the time. In In many respects, Google has contributed to the advancement
of moral behavior in the computer and digital sectors. Google is frequently listed as one
of the "World's Most Ethical Companies" by the Ethisphere Institute. Businesses"
because of what it does for the environment and community. Additionally, the business is
frequently listed as one of Fortune's "100 Best Companies to Work for" due to its
enjoyable and an inventive workplace.

One emerging source of economic value is personal data. After being sorted and
analyzed, they give businesses pertinent data on people's hobbies and pursuits, which is
quite helpful for advertising. Based on the economics of personal data, some of the
biggest Internet firms, like Google, Facebook, and Twitter, were established. Their efforts
in this field demonstrate how crucial it is to gather, compile, analyze, and profit from
personal data.

Now Google doing a lot of ways to provide consumers not just convenience but as well
as security to users. Data controls are integrated into every Google Account, allowing
users to select the privacy settings that best suit their needs. Furthermore, our privacy
settings change along with technology, guaranteeing that users always have the freedom
to choose how private they want to be. Google services benefit from increased online
data security and privacy thanks to encryption. The data you produce is sent between
your device, Google services, and our data centers whenever you send an email, share
a video, visit a website, or save images. Google use several security measures to
safeguard sensitive data, including cutting-edge encryption technologies like Transport
Layer Security and HTTPS. Additionally, Every day, Google Safe Browsing helps
safeguard over five billion devices by alerting users when they try to access risky websites
or download risky files. Take note, Google does not sell your private data. Your personal
information is never sold to third parties. They are also able to provide our solutions
without charging because of advertising, which also helps the websites and applications
we work with financially support their content. You can rest assured that Google never
provide your information to third parties while displaying advertisements to you.
• Tax Avoidance
During her campaign for leadership, Theresa May, a member of the United Kingdom
Parliament, expressed the view that companies such as Amazon, Google, and Starbucks
should fulfill their obligation to contribute to society and repay their fellow citizens by
paying their taxes. Callister (2023) states that businesses bear complete responsibility
and legal liability for their actions. To ensure compliance, businesses must enforce
stringent regulations within their organization. These regulations encompass informing
employees and colleagues about tax policies, identifying high-risk fraudulent entities prior
to engaging in investments, implementing due diligence strategies or audit investigations
for both the company and third-party entities, understanding the distinction between tax
evasion and avoidance, and reporting any suspicious behaviors through a whistle-blowing
hotline. Tax evasion is an illicit strategy employed by corporations or individuals to avoid
fulfilling their tax obligations. It frequently stems from a lack of transparency, and those
who engage in this behavior are typically subjected to fines or other forms of punishment.
This behavior diverges from tax avoidance, which adheres to legal obligations but exploits
loopholes through incentives, deductions, exclusions, and credits to minimize the
company's liability. The website employed this tactic to shield themselves from legal
disputes. Consequently, while it may appear unjust, the actions taken by the site against
the European Commission are not unlawful.
• Market Dominance
The website's global influence is consistently growing each year, resulting in an
uneven comparison of revenue among search engines. This has positioned Google as
the most dominating entity in controlling advertising price and terms. Competitors struggle
to survive in the industry due to the website's monopoly of resources. As of July 2023,
Google held approximately 83.49 percent of the market shares, while Bing, in second
place, only had 9.19 percent (Bianchi, 2023). This detrimentally impacts the profitability
of alternative search engines while also fostering ongoing progress for Google.

Every organization aspires to achieve global dominance, and the actions taken by the
website serve as a prime example of a successful endeavor in this regard. Regrettably,
there are drawbacks associated with it legal disputes with nations and corporations who
desire a fairer market competition. While it is reasonable for both parties to engage in
their respective conflicts, it is undeniable that Google has not committed any wrongdoing
and is merely attempting to achieve the highest position, as is the case with all other
brands.

• Excessive dependence on Online Advertising

Since the website functions as an enterprise that operates exclusively on the Internet,
it mainly depends on online advertising. One of the online partners of the company is
Google Ads (formerly called Google AdWords), which allows Google to generate income
by distributing media for other brands. This is a mutually beneficial arrangement where
the advertised companies receive visibility and the search engine generates revenue from
the brands' contributions.

Excessive advertising can impede users' ability to read information, prompting Google
to develop measures to reduce its dependence on ad revenue. Its non-advertising
revenue has surged from a mere $0.8 billion in 2009 to $20.5 billion (Richter, 2019). This
demonstrates the website's ability to generate revenue through alternative methods,
indicating that Google may continue to experience consistent growth.

CONCLUSION

The significance of online media in defining contemporary information collecting is

crucial, with Google serving as the dominant global search engine. In 2017, the website
faced numerous problems, including legal disputes with the European Commission that
resulted in a deadlock. As a result, both companies and customers were concerned about
the tactics employed by the website (Schmidt, 2017). The European Union's
dissatisfaction with Google stems from a series of illicit activities that have been attributed
to Google by the EU. Publishers are encountering difficulties with Google. The Guardian,
along with other publications, has expressed worries about Google's dominant market
position and its growing reliance on online advertising. As a result, The Guardian made
the decision to remove advertisements from YouTube videos that featured extremist
content. Axel Springer, a German publishing giant and a Google customer, endorses EU
measures against the company due to its perceived impact on publishers' principles,
comprehension of human nature, worldwide social structure, and the future of Europe.
However, it is unquestionably the most prestigious and prosperous website for
information retrieval, utilizing its authority for promotional purposes, ensuring customer
contentment through an immersive browsing experience, exploiting legal loopholes
effectively, and establishing user-friendly interfaces to generate additional income.
Despite being associated with instances of tax avoidance, excessive advertising, and
privacy policy violations, Google itself is not inherently malevolent. Rather, the lack of
transparency among the company's employees is responsible for these issues. It is
evolving into an online platform that focuses on customers and generates income, making
it available worldwide.
 REFERENCES:

• European Commision (2017) - Antitrust: Commission fines Google €2.42 billion for
abusing dominance as search engine by giving illegal advantage to own
comparison shopping service Factsheet
https://ec.europa.eu/commission/presscorner/detail/es/MEMO_17_1785

• Sullivan,D.(2015).Problems & Solutions: Analyzing The EU’s Antitrust Charges

Against Google Over Shopping Search. Search Engine Land .Retrieved from;
https://searchengineland.com/problems-solutions-eu-antitrust-google-218899

• Woods,D.(2018).Is Google Search Fair? Search Expert Grant Ingersoll Weighs

In.Forbes.Retrieved from; https://www.forbes.com/sites/danwoods/2018/09/28/is-
google-search-fair-search-expert-grant-ingersoll-weighs-in/?sh=7369a70242a1

• Tax Avoidance-Google Ninth Report of Session 2013-14 Report, together with

formal minutes, oral and written evidence. (2013). Retrieved from;
https://publications.parliament.uk/pa/cm201314/cmselect/cmpubacc/112/112.pdf

• Press corner. (2024). European Commission - European Commission. Retrieved

from; https://ec.europa.eu/commission/presscorner/detail/en/MEMO_17_1785

• Bianchi, T. (2023, September 20). Global Search Engine Desktop Market Share
2023. Statista. https://www.statista.com/statistics/216573/worldwide-market-
share-of-search-engines/

• Callister, L. (2023, August 21). 5 steps to avoid the facilitation of tax evasion.
skillcast. https://www.skillcast.com/blog/5-steps-to-avoid-facilitating-tax-evasion