March 2010

Google Says It's Still Self-Censoring China Searches

Google said it's still providing censored search services for some partners in China, after announcing this week it would begin offering unfiltered results in the country.

The company needs to fulfill "existing contractual obligations as we believe it's the responsible thing to do," Jessica Powell, a Tokyo-based spokeswoman, said in an e-mail today. Google will phase out censored services for partners "over time," she said. "Google is likely to lose a lot of its advertisers in China, which are mainly smaller businesses," said Jake Li, an Internet analyst at Guotai Junan Securities Co. in Shenzhen. "Google will be paying a lot of attention to how it manages its alliances with its major Chinese partners." Tom Online, the Beijing-based portal owned by billionaire Li Ka-shing, said yesterday it stopped using Google to power Internet searches. The Chinese site is using Baidu Inc.'s services.

China's Booming Internet Giants May Be Stuck There

Even before Google began threatening to shut down its search service in China, it was not fitting in. Google and other major American Internet companies like Yahoo and eBay failed to gain significant traction in the Chinese market. And Facebook, Twitter and YouTube are blocked by the government. Instead, the hottest companies in the world's biggest Internet market have names like Baidu, Tencent and Alibaba — fast-growing local firms that are making huge profits. Post-Google, China's Internet market could increasingly resemble a lucrative, walled-off bazaar, experts say. Those homegrown successes, however, could have trouble becoming global brands.

Google and China

[Commentary] Google's decision to stop censoring its search service in China on Monday was a principled and brave move, a belated acknowledgment that Internet companies cannot enable a government's censorship without becoming a de facto accomplice to repression. We hope that other American companies with operations in China, notably Microsoft and Yahoo, will consider emulating Google's decision.

Google's departure may have more resonance outside China than within. We don't know how many of China's many millions of Internet users will be able to read about this public indictment of China's use of censorship. But that is preferable to helping maintain the fiction that the Internet in China is the same sort of vehicle for open communication that it is most everywhere else.

Google's Freedom Search

[Commentary] Restrictions on Internet freedom in China have forced all foreign media companies that operate there to make and accept compromises. But then it should come as no surprise that an authoritarian government does not make it easy to promote the free flow of information.

Hard choices must be made on how to balance core values, shareholder profits and the best interests of Chinese consumers. So it's all the more impressive that Google has displayed sound instincts and judgment at every step of the way in China. And it's all the more alarming that in the end Google decided it had no choice but to abandon its Chinese-language search services hosted on mainland servers. Harsher control only feeds public dissatisfaction. We're seeing this in the reaction to the Google conflict, with normally nationalistic netizens expressing support for the company and even delivering flowers to its Beijing headquarters. Google has made censorship of search results, largely invisible until now, a topic of debate. Incrementally advancing freedom is the best that media companies can hope to do in China.

Staying out of the country entirely or plunging in with no bottom line have their own risks and opportunity costs. It's much harder to try to do business there while also preserving your values. But that is where valuable contributions can be made.

US watching what China does next with Google

[Commentary] Doing business in China just got a lot harder.

The country's overbearing government slapped on the cyber-handcuffs when Google tried launching a free-and-open Web site from Hong Kong to replace its censored mainland version. Google deserves full credit for trying, but there was almost no good option, given Chinese intransigence. Beijing views the Google-style free flow of information as "the politicalization of commercial issues" and said the new unfiltered Web site was "totally wrong." The Google slap-down could be a turning point. Tough as Beijing sounds, it may not want to bring on a trade war, irritate some 800 million Internet users in its own country, and worsen its worldwide image. Beijing may not be done with Google yet. The firm carefully separated its research and ad sales teams from the Web site furor, hoping to maintain a presence in the world's biggest online market.

What China does next will be closely watched by American businesses as well as Washington.

Google and China: What Obama can learn

[Commentary] For four years, Google has caved to Beijing's demands to self-censor search results on its search engine within China. Now it has drawn a line in the sand about truth and transparency on the Internet. It will move its Chinese operations to Hong Kong in hopes of operating freely. Given Google's prominence on the Web, the move may force China's rulers to rethink their stranglehold over information reaching 1.3 billion Chinese.

But more important, Google's decision to stand up for an ideal may serve as a lesson for other companies operating in China - and perhaps even for President Obama. He has hesitated in challenging China's curbs on basic freedoms. Most of all, he has avoided official criticism of one of China's most damaging restraints: the manipulation of its currency on the open market.

The US must make sure its free-market model will prevail. With only a few words in the coming Treasury report, the Obama administration could signal that the course of history will be toward more - not less - economic freedom. Such a designation need not result in the US taking retaliatory action against Chinese imports. Rather, it could help Obama in rallying other countries to speak in one loud voice in hopes that China would become a responsible stakeholder in an open economic order. Google has spoken. Will Obama?

Google EU Ruling May Prompt Company to Tweak Its Search Layout

Google, spurred by a European Union court ruling, may need to consider changing the layout of its search results to better identify the trademark holders behind online ads, lawyers said.

The case centers on keywords -- the Internet search terms that Google uses to suggest relevant ads to users. The EU's high court found that Google could be liable under certain conditions if brand-name keywords link to ads that infringe the trademark. Advertisers also can be sued if they use keywords to trigger ads that hide the origin of the products. The ruling may prompt Google to change the way sponsored links are sold in its AdWords program and presented on search pages, said Nicola Dagg, an intellectual-property lawyer at Allen & Overy LLP in London. The ads are central to Google's business, accounting for most of its $23.7 billion in revenue last year. One idea may be that the sponsored link would contain a depiction of the advertiser's trademark or logo, showing that the right company is behind the goods or services, Dagg said.

Caution lights for the military's 'information war'

[Commentary] It has become commonplace since Sept. 11, 2001, to speak of the "war of ideas" between Muslim extremists and the West. But there has been too little attention paid to the U.S. military's mobilization for this war, which is often described by the oxymoronic phrase "information operations."

To populate this information "battle space," the military has funded a range of contractors, specialists, training programs and initiatives -- targeted on the hot wars in Afghanistan and Iraq and the broader zone of conflict in the Middle East and Central Asia. Gen. David Petraeus, the Centcom commander who oversees that region, has been one of the military's most vocal proponents of aggressive information operations. The potential problems were highlighted on March 14, when the New York Times revealed that a Pentagon official from the "strategic communications" realm had funded contractors to gather intelligence in Afghanistan. Last week also brought a report by The Post's Ellen Nakashima that the military, in an offensive information operation, had shut down a jihadist Web site that the CIA had been monitoring for intelligence purposes. In both cases, it seemed the military was wandering into the covert-action arena traditionally reserved for the CIA.

This murky area should be marked with a flashing yellow warning light, meaning: "Slow down!" The United States should be careful about encouraging, in effect, the militarization of information -- and it should be especially cautious when these efforts bleed into the intelligence world. We are a nation that has prospered uniquely from open, untainted information flows. As I watch the covert contractors get their arms around this topic, it makes me nervous.

Health Care Reform Advertising Outlives Debate

The health care reform debate might have essentially ended with Sunday's historic House of Representatives vote for passage of the bill, but the legislation will nonetheless have residual effects for the advertising industry.

You thought the ads for health-care reform were over? Think again. The American Federation of State, County and Municipal Employees (AFSCME), which represents more than 1.6 million union workers, has begun airing ads this week in the districts of 14 Democratic members of Congress who voted for health-care reform but whose seats may be at risk because of that vote come November. The campaign -- a one-week, $1 million TV ad buy also backed by the group Health Care for America Now -- is titled "On Our Side." The ads applaud the members of Congress who were pro-reform against what AFSCME calls "the 2,049 health insurance company lobbyists and the $86 million in misleading ads" that were spent during the health-care debate.

Telecom companies seek to make Haiti a mobile nation

The earthquake that devastated Haiti also destroyed the nation's feeble network for phones and Internet service. Except for cellphones, the population was largely cut off from communication. But out of the rubble, one U.S. wireless industry pioneer sees opportunity.

John Stanton, founder of Voice Stream and former chief executive of T-Mobile USA, wants the Haitian government to forget about rebuilding its copper wire communications network. Instead, he thinks Haiti should go mobile. "Necessity is the mother of invention," Stanton said. In a keynote speech prepared for delivery at the wireless industry's CTIA trade show Wednesday in Las Vegas, Stanton called for the Haitian government to create an all-wireless nation with more robust networks for the population of nearly 10 million and to build an economy centered on mobile technology. "By deploying state-of-the-art wireless systems, we enable less-developed countries to leapfrog older technologies, and those systems become the foundation for a new economy," Stanton said.