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Privacy group sues to stop Google policy change
by Staff Writers
San Francisco (AFP) Feb 8, 2012

Social network Path apologizes in privacy flap
San Francisco (AFP) Feb 8, 2012 - Social network Path on Wednesday apologized for uploading users' address book information without asking for permission.

"We made a mistake," Path co-founder and chief executive David Morin said in a blog post. "We are deeply sorry if you were uncomfortable with how our application used your phone contacts."

Path released updated applications modified to ask users whether they would like to opt in or out of letting the service use personal contact list information to help them connect with friends or family at the social network.

"We want to clarify that the use of this information is limited to improving the quality of friend suggestions when you use the 'Add Friends' feature and to notify you when one of your contacts joins Path -- nothing else," Morin said.

Contact information mined from users computers was encrypted before being transmitted to Path servers, where the information was securely stored," according to the company.

"We now understand that the way we had designed our 'Add Friends' feature was wrong," said Morin, a former Facebook executive.

"As a clear signal of our commitment to your privacy, we've deleted the entire collection of uploaded contact information from our servers."

Path was slammed with criticism after news spread of a software developer who discovered that the social network's applications copied information from people's phone books without letting them know.

Path has free applications tailored for use on devices powered by Apple or Android software.


A consumer advocacy group on Wednesday filed a lawsuit to try to derail Google's plan to merge user data from YouTube, Gmail, Google+ and other services in individual comprehensive profiles.

The Electronic Privacy Information Center urged a federal court to block Google from implementing the change on March 1 as planned and to direct the Federal Trade Commission to intervene.

Google announced the change to its terms of service in January, explaining that it will essentially "treat you as a single user across all our products" when it comes to use patterns tracked for targeting services, content or ads.

EPIC charged that the change would violate an agreement that the commission negotiated with the California Internet giant last year to address privacy concerns raised by the launch of a failed Google Buzz social tool in 2010.

Combining user data as planned without consent from the people involved would breach the consent decree signed by Google, EPIC argued.

"EPIC is wrong on the facts and the law," Google countered in a statement released Wednesday.

Google, facing pressure from US lawmakers over the new privacy policy, said on January 31 that it remains committed to protecting consumer data as it creates a "seamless and easy" Web experience.

The Internet giant sent a letter to lawmakers and posted comments on its public policy blog defending the changes, which will consolidate the policies of its offerings such as search, mail, video and map usage.

Google said in a blog post at the time that said the change will make Google's privacy policy "simpler and more understandable" and will "make our users' experience seamless and easy by allowing more sharing of information among products when users are signed into their Google Accounts."

Some privacy advocates have expressed concern that users will not be able to "opt out" of the new policy, which will allow advertisers to develop personalized messages based on Web searches, use of Android mobile devices or activity on other Google products.

Google allows people to opt out of any data collecting by searching, watching videos on YouTube, getting directions on Google Maps, and performing other tasks without signing into a Google Account."

US Representatives Edward Markey and Joe Barton sent a letter to the FTC last month asking if the planned changes are a violation of the settlement.

Google said in its letter to lawmakers that "our approach to privacy has not changed," and that Google users "continue to have choice and control" over private data by not signing into accounts or by using other tools like anonymous search or chat.

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China's Alibaba raising $3bn for Yahoo! stake: report
Beijing (AFP) Feb 9, 2012 - Chinese online commerce giant Alibaba plans to borrow $3 billion to buy back the stake Yahoo! owns in the company, a report said Thursday, as the struggling US Internet firm overhauls its Asia holdings.

Alibaba, whose Hong Kong shares were suspended from trading on Thursday, is raising money from six banks and the loan is expected to be finalised this month, the Wall Street Journal said, citing unidentified sources.

Alibaba gave no reason for the trading halt and its spokesman John Spelich declined to comment when contacted by AFP.

The report comes after Yahoo! on Tuesday announced a boardroom shakeup to breathe fresh life into the Internet firm that has been struggling to re-invent itself and appease disappointed investors.

Chairman Roy Bostock said he would step down from the board along with three other directors -- just weeks after Jerry Yang, who co-founded Yahoo! and had an ill-fated stint as chief executive, resigned from all of his positions.

Bostock, in a letter to shareholders, also said Yahoo! was in "active discussions" with its partners in Asia on restructuring its holdings in the Alibaba Group and Yahoo! Japan.

Alibaba is 43 percent owned by Yahoo! and Alibaba Group chairman Jack Ma has a long-standing offer to buy all or part of the company.

Yang served as chief executive of Yahoo! from June 2007 to January 2009, during which time he and Bostock notably turned down a $47 billion takeover bid from Microsoft, earning the ire of many shareholders.

Bostock and Yang have been the targets of stockholder anger as Yahoo!'s stock price sank to about half of what it was when company leaders snubbed Microsoft's generous buyout bid.

Yang ceded the Yahoo! helm to Carol Bartz, whose efforts to turn the company around were cut short when she was fired in September, prompting her to describe the company's board as "doofuses".

Since Bartz stepped down as chief executive, Yahoo!'s board has reportedly been looking at selling all or part of the company.



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Amazon tests waters in India
New Delhi (AFP) Feb 8, 2012
US online retail giant Amazon has made its first foray into India with launch of a shopping website, Junglee.com, as it tests the waters for a possible full entry into the nation's e-commerce market. India's e-commerce business is set to boom as incomes and consumer demand climb in a country of 1.2 billion people with a steadily ballooning middle class, analysts say. Amazon's move, annou ... read more


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