EPIC Petitions FTC to Probe Google, Cloud Computing Services - Update

Electronic privacy information centre, or EPIC, a public interest research organization, has formally asked the Federal Trade Commission to open a probe into search giant Google Inc.'s (GOOG) Cloud Computing Services -- including Gmail, Google Docs, and Picasa -- to determine "the adequacy of the privacy and security safeguards."

The request for probe is also meant "to assess the representations made by the firm regarding these services, to determine whether the firm has engaged in unfair and/or deceptive trade practices, and to take any such measures as are necessary, including to enjoin Google from offering such services until safeguards are verifiably established."

The EPIC petition follows the recent report of a breach of Google Docs. Citing the growing dependence of American consumers, businesses, and federal agencies on Cloud Computing Services, the body urged the Commission to take "such measures as are necessary" to ensure the safety and security of information submitted to Google.

Previous EPIC complaints have led the Commission to order Microsoft Inc. (MSFT) to revise the security standards for Passport and to require data aggregation company Choicepoint to change its business practices and pay $15 million in fines.

GOOG closed Tuesday's regular trade at $335.34, up $15.65 or 4.90%, on 4.72 million shares.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com