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Google Pays $500M Fine To The Government

Google is about to dish out $500 million, and this time it’s not on a renewable power plant! According to the Wall Street Journal, the FDA had investigated on Google profiting illegally from ads placed by non-US pharmacies. Google and other search engine sites blocked many overseas pharmacy ads in early 2010 since it is illegal for U.S. citizens to have drugs imported.

The federal investigators believe that Google took advantage of the fact that the feds often turn a blind eye in regards to imported drugs from Canada and do not typically prosecute individuals. Google placed ads for both US and Canadian pharmacies since many US citizens get their medication from Canada due to it being cheaper.

So if federal investigators usually turn a blind eye to imported Canadian drugs, what made them start caring? Add two and two together and you can see how $500 million is chump change for Google. Google rakes in about 30 billion dollars per year, so 500 million is about 1.6% of one year’s revenue. Not too bad for Google, and obviously excellent for the U.S. government. Does this fine really fix anything? Of course not, and I am sure Google feels a bit bitter about the deal, but the law is the law and heck if I’m going to break it! The pictures and video are unrelated to the drugs or drug ads discussed in this blog.


Photo Courtesy of sundazed
Photo Courtesy of Dennis