Google, which is owned by Alphabet Inc , and its YouTube video service will pay ...
), and its YouTube video service will pay $170 million to settle allegations that it broke federal law by collecting personal information about children, the Federal Trade Commission said on Wednesday.
It is also small compared with the company’s revenues. Alphabet, which generates about 85% of its revenue from sales of ad space and ad technology, in July reported total second-quarter revenue of $38.9 billion. FTC Chairman Joe Simons noted at a news conference on Wednesday what he said were important changes to YouTube business practices. “No other company in America is subject to these types of requirements and they will impose significant costs on YouTube,” he told reporters.
YouTube allows companies to create channels, which include advertisements that create revenue for both the company and YouTube. The two Democrats on the FTC, Rebecca Slaughter and Rohit Chopra, dissented from the settlement. Slaughter, who called the violations “widespread and brazen,” said the settlement fails to require YouTube to police channels that provide children’s content but do not designate it as such, thus allowing more lucrative behavioral advertising, which relies on tracking viewers through cookies.
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