Lawmaker Questions Google Over Privacy Practices

WASHINGTON(Reuters) – The top Republican on the U.S. House of RepresentativesEnergy and Commerce Committee asked Google chief executive Eric Schmidton Wednesday to detail the search engine’s privacy practices since itacquired rival DoubleClick.

"It is critical that Google’s and DoubleClick’s policies andprocedures for handling this information be transparent, and that everyeffort is made to protect consumers’ data," Texas Rep. Joe Barton wrotein a letter to the company dated May 21.

In the letter, Barton asked if and how data collected by Google andDoubleClick about computer users would be merged and how the data wouldbe used, and if Google planned to continue allowing users to opt out ofad-serving cookies.

Privacy advocates have expressed concern that a wave ofconsolidation in online advertising would lead to a concentration ofpersonal information in the hands of a few powerful companies.

The lucrative online advertising industry has prompted a string of deals in recent months.

Barton also asked Google why a new technology to identify who shouldreceive which ads would retain the IP address and user ID, or browserID.

Schmidt and Barton met in November, and two of Barton’s aides wentto Google headquarters in Mountain View, California in December todiscuss privacy.

"We have had a constructive ongoing dialogue with Rep. Barton’sstaff about our privacy practices, and while the integration ofDoubleClick into Google is still underway, we will of course respond tohis questions," Google spokesman Adam Kovacevich said in an e-mailedresponse to questions about the letter.

Barton asked Google to reply to his questions by June 6.

Consolidation in the industry has included Google’s acquisition ofDoubleClick for $3.4 billion, Microsoft Corp’s $6 billion deal foraQuantive and Yahoo’s purchase of BlueLithium for $300 million. TimeWarner Inc’s AOL unit also bought Tacoda for an undisclosed amount.

Google has been in talks with Yahoo regarding a possible advertising deal between them.

(Editing by Toni Reinhold)