12 May 2011 | Author: C. Tate

Google sets aside $500m for US investigation

Google has set aside $500 million in order to make a potential settlement in the wake of a US government investigation into the search giant.

As the United States Department of Justice looks into the use of Google advertising by certain companies, a regulatory filing from Google read:

"In May 2011, in connection with a potential resolution of an investigation by the United States Department of Justice into the use of Google advertising by certain advertisers, we accrued $500 million for the three month period ended March 31, 2011. Although we cannot predict the ultimate outcome of this matter, we believe it will not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows."

The company hasn't elaborated on the finer details of the investigation, but it would appear Google's prepared to pay a large cash settlement, possibly as a fine.

The statement continued that certain advertisers' usage of the Google service was being looked at; so they may be made liable for aiding, or at least failing to stop this usage.

This investigation is not the only light being shone on Mountain View's operations at the moment. The European Commission is also currently looking at an alleged abuse of Google's market dominance, where rival services had been relegated in search rankings.

Additionally, Federal Trade Commission began examining the launch of Google's Buzz social network in March. This led to the commission announcing this month that a broad anti-trust investigation will proceed.

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