The Steep Cost of Google's Illegal Pharmacy Advertisements

In one of the largest forfeitures in U.S. history, Google agreed to pay $500 million to settle a dispute with the Justice Department Wednesday for displaying ads for Canadian companies that sell illegal pharmaceuticals in the U.S. As CNET's Jay Greene explains, the settlement "covers the gross revenue received by Google as a result of Canadian pharmacies advertising through Google's AdWords program, and the gross revenue made by those pharmacies from their sales to U.S. consumers." Here's why the settlement is about more than just the money:

The cash itself  Ryan Singel at Wired notes that the $500 million price tag represents over 20 percent of the company's profits from the first quarter of this year. Still, the settlement won't come as a huge surprise to investors. "The announcement was widely expected as Google mentioned in an SEC filing in May it was setting aside half a billion to pay a fine."

Read the full story at The Atlantic Wire.

Presented by

The Atlantic Wire is your authoritative guide to the news and ideas that matter most right now.

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well. Bestselling author Mark Bittman teaches James Hamblin the recipe that everyone is Googling.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well.

Video

Before Tinder, a Tree

Looking for your soulmate? Write a letter to the "Bridegroom's Oak" in Germany.

Video

The Health Benefits of Going Outside

People spend too much time indoors. One solution: ecotherapy.

Video

Where High Tech Meets the 1950s

Why did Green Bank, West Virginia, ban wireless signals? For science.

Video

Yes, Quidditch Is Real

How J.K. Rowling's magical sport spread from Hogwarts to college campuses

Video

Would You Live in a Treehouse?

A treehouse can be an ideal office space, vacation rental, and way of reconnecting with your youth.

More in Technology

Just In