Google spars with European lawmakers over privacy

By David Lawsky

BRUSSELS (Reuters) - Google attacked European parliamentarians and privacy advocates on Monday for trying to have competition authorities consider the handling of personal information in its $3.1 billion takeover of rival DoubleClick.

The argument was the centerpiece of a European Parliament hearing to consider the burgeoning role of the Internet in impinging on the privacy of citizens.

The U.S. Federal Trade Commission (FTC) signed off last month on Google's (GOOG.O: Quote, Profile, Research, Stock Buzz) $3.1 billion deal, which combines its dominance in pay-per-click Internet advertising with DoubleClick's market-leading position in display ads.

After listening to a visiting FTC commissioner, U.S. and European privacy advocates and European parliamentarians question the impact of the deal on European citizens' on-line privacy, Google's global privacy counsel shot back.

"People (are) trying to take a privacy case and shoehorn it into a competition law review ... I can understand that people continue to peddle this theory in Europe after having lost in the United States," Peter Fleischer said. His attack did little to calm the waters.

"The reason you want to have the data is because it gives you a competitive advantage. It is business. I don't think they can be completely disconnected. And we should discuss that side of things too," said Sophie in 't Veld, the Dutch parliamentarian who sought the hearing.

She called information a competitive factor and declared: "Having that much information is market power."

Federal Trade Commissioner Pamela Harbour said her four colleagues at the FTC had taken a traditional approach and excluded questions of privacy in their decision. She dissented.