No Friends In Ireland: Probe Begins Into Facebook Privacy Issues | Fox News

Privacy watchdogs began an on-site investigation Tuesday of Facebook’s regional office in Ireland, FoxNews.com has learned, following sensational accusations that the company is creating extensive “shadow profiles” of non-users.

The eye-popping assertion came in a complaint filed in August by Ireland’s Data Protection Commissioner, which alleges that users are encouraged to hand over the personal data of others. That includes “sensitive data such as political opinions, religious or philosophical beliefs, sexual orientation and so forth” — and Facebook is storing it all up in its databases.

Despite the company’s firm denials, the Data Protection Office began hunting for evidence on Tuesday, Oct. 25, to back up those claims.

“The on-site element started on Tuesday,” Lisa McGann, a spokeswoman for the Office of the Data Protection Commissioner, told FoxNews.com. The search will take a number of days, she said, but she could not address questions about what specifically the commissioner hoped to find or had already discovered.

In such investigations, the office has the power to inspect the building, question employees, and take away copies of any files stored on local computers, according to the Commissioner’s audit guidelines. The agency will then pore over that data for the next few weeks.

“It is the intention of the commissioner that the investigation will be completed by the end of the year,” McGann told FoxNews.com. The organization conducts few such reports each year; according to the Data Protection Commissioner’s 2010 annual report, the office opened 231 formal complaints under the Privacy in Electronic Communications Regulations act — but only conducted 32 “comprehensive privacy audits.”

via No Friends In Ireland: Probe Begins Into Facebook Privacy Issues | Fox News.

Las Vegas Sands Probe: Explained – Law Blog – WSJ

Since the initial news of the U.S. government’s bribery investigation into Las Vegas Sands’ Macau operations, we’ve scarcely heard a peep about it.

The casino owner and operator disclosed in March that the U.S. Securities and Exchange Commission and the U.S. Justice Department were investigating whether LVS violated the Foreign Corrupt Practices Act, which bars bribery of foreign officials.

FCPA aficionados know that this case holds intense interest. The government, no doubt, wants to make a splash by pegging a casino, and, in the words of the Fixx, one thing leads to another. The SEC and Justice Department rarely stop with one company in any particular industry when it comes to overseas bribery. They are likely to start looking at other casinos, if they haven’t already.

So, with that windup, WSJ’s Kate O’Keeffe has a report on an internal memo from LVS general counsel Gayle Hyman that points to a possible focus of the probe.

Hyman’s memo, reviewed by the WSJ,  instructs employees at Sands to retain documents regarding “transmission of anything of value” to current and former Macau government officials and their family members. The memo also names several Sands employees and contractors about whom documents must be preserved. Among those people is a prominent Macau lawyer who is a focus of a dispute between the company and its former chief executive for Macau.

The memo mirrors a subpoena sent by the SEC, a person familiar with the matter told the Journal.

via Las Vegas Sands Probe: Explained – Law Blog – WSJ.

Google’s antitrust probe drives speculation – The China Post

he U.S. antitrust probe into Google Inc. could hem in its growth ambitions for years, even if regulators do not unleash their most formidable weapons: Seeking a breakup of the Internet giant or exerting control over its cherished search algorithm.

The U.S. Federal Trade Commission’s (FTC) probe into business practices at Google, announced last month, puts it in the company of Microsoft Corp., IBM and other businesses that landed in the government’s crosshairs. In perhaps the most drastic case, the process led to the breakup of AT&T Corporation.

Some analysts and investors believe Google will strike a settlement with the government to avoid the distraction and business risk that would come with a prolonged court fight.

But they also note that a worst-case outcome could curtail Google’s growth prospects and undermine its position at the top of an increasingly competitive Internet industry.

David Balto, a former policy director for the FTC, said government efforts to oversee Google’s day-to-day operations could cramp its ability to innovate.

“It would be like putting mittens on Da Vinci’s hands,” he said. “We’d still get paintings but they would be nowhere as brilliant.”

via Google’s antitrust probe drives speculation – The China Post.

Is the Google Probe ‘Microsoft Redux?’ – Law Blog – WSJ

As we noted yesterday, Google faces the most serious legal threat of its young existence:  an antitrust probe into whether it has used its dominance in search-advertising to illegally freeze out competition.

Specifically, the Federal Trade Commission is expected to look into whether Google searches unfairly steer consumers to Google’s own products, and away from those of its competitors,  WSJ reports.

Google, of course, could walk away without a scratch. But still, the antitrust probe is so broad in scope, with the potential to reshape the tech landscape, that it naturally calls to mind the Microsoft case, when the government in the 1990s accused the computer company of using its dominant Windows operating system to hobble competitors.

Are the comparisons apt?

Gary Reback, a Silicon Valley antitrust lawyer who attacked Microsoft before and has pushed for action against Google, sure thinks so. “It is Microsoft redux,” he told WSJ in this piece comparing the two high-profile antitrust matters. “It is almost exactly the same case,” he said.

via Is the Google Probe ‘Microsoft Redux?’ – Law Blog – WSJ.

Facebook Faces EU Privacy Probe Over Facial-Recognition Photo ‘Tagging’ – Bloomberg

Facebook Inc. will be probed by data- protection regulators from the 27-nation European Union over a feature that uses a facial-recognition program to automatically suggest people’s names to tag in pictures.

“Tags of people on pictures should only happen based on people’s prior consent and it can’t be activated by default,” said Gerard Lommel, a Luxembourg member of the so-called Article 29 Data Protection Working Party. Such automatic tagging “can bear a lot of risks for users” and the group will “clarify to Facebook that this can’t happen like this.”

Facebook, owner of the world’s most popular social- networking service, said in a post on its blog yesterday that “Tag Suggestions” are available in most countries now after a rollout that’s been going on over several months. The feature uses facial-recognition software, and when a user posts a new photo to their Facebook page, the feature suggests peoples’ names to be tagged based on pictures they have been tagged in before.

The feature is active by default on existing users’ accounts and Palo Alto, California-based Facebook explains on its blog post how people can disable the function themselves if they don’t want their names to be suggested automatically in other people’s pictures.

via Facebook Faces EU Privacy Probe Over Facial-Recognition Photo ‘Tagging’ – Bloomberg.

Alcatel-Lucent Pays $137 Million To Settle FCPA Probe – Corruption Currents – WSJ

French telecommunications company Alcatel-Lucent S.A. and three of its subsidiaries agreed to pay more than $137 million in fines and penalties to settle a foreign bribery investigation into illicit payments in Costa Rica, Honduras, Malaysia and Taiwan.

Philippe Wojazer/Reuters

Alcatel-Lucent Chief Executive Ben Verwaayen speaks during the company’s shareholders meeting in Paris on June 1, 2010. The company settled a foreign bribery investigation Monday with U.S. regulators by agreeing to pay $137 million in penalties and fines.

The company admitted it earned $48.1 million in profits from the improper payments, of which $45 million will be paid to the Securities and Exchange Commission in the form of a disgorgement penalty. Alcatel-Lucent said it will pay $92 million to settle Justice Department charges. It has already set aside the money, according to filings released in mid-February.

“Alcatel and its subsidiaries failed to detect or investigate numerous red flags suggesting their employees were directing sham consultants to provide gifts and payments to foreign government officials to illegally win business,” said Robert Khuzami, director of the SEC’s Division of Enforcement, in the statement. “Alcatel’s bribery scheme was the product of a lax corporate control environment at the company.”

The SEC alleged in its civil complaint that Alcatel’s subsidiaries used consultants who performed illegitimate work to funnel more than $8 million in bribes to government officials to obtain telecommunication contracts and other deals. The Justice Department said in a statement it filed a criminal information against Alcatel-Lucent charging one count of violating the internal controls provision of the Foreign Corrupt Practices Act, and one count of violating the books and records provision of the FCPA.

via Alcatel-Lucent Pays $137 Million To Settle FCPA Probe – Corruption Currents – WSJ.

RT @AmLawDaily: 50 State AGs Take on ‘Robo-Signers’ in Foreclosure Probe http://bit.ly/dnjXaB

RT @AmLawDaily: 50 State AGs Take on ‘Robo-Signers’ in Foreclosure Probe http://bit.ly/dnjXaB

Schlumberger Faces Bribery Probe – WSJ.com http://bit.ly/95gUSH #ediscovery

Schlumberger Faces Bribery Probe – WSJ.com http://bit.ly/95gUSH #ediscovery

Government expands HP bribery probe | Politics and Law – CNET News

The U.S. government has widened its probe into possible bribes paid by Hewlett-Packard to help it capture a lucrative contract in Russia.

Officials in the U.S., Germany, and Russia have been investigating allegations that current and former employees of HP engaged in bribery, embezzlement, and tax evasion in connection with a business deal between Hewlett-Packard ISE GmbH, a former HP German subsidiary, and the chief public prosecutor’s office in Russia, according to an SEC document filed by HP on Thursday (see Note 16 under Russia GPO and Related Investigations).

According to the allegations, the HP subsidiary paid bribes totaling $10.9 million to win a $44.5 million contract stretching from 2001 to 2006 to set up an IT network for the Russian prosecutor’s office. Looking into the transaction, known as the Russia GPO deal, the Justice Department and the Securities and Exchange Commission are trying to determine if HP violated the Foreign Corrupt Practices Act (FCPA), which specifically covers bribes paid to foreign government officials.

via Government expands HP bribery probe | Politics and Law – CNET News.

Acquisition May Create Headaches for Merck in Foreign Corruption Probe | BNET

Merck (MRK) disclosed in its quarterly 10-Q filing that it is the subject of an investigation by the Department of Justice and the SEC for possible violations of the Foreign Corrupt Practices Act (which prohibits paying bribes to do business in foreign countries). The investigation comes with a bit of unspoken history — and some potential risk created by Merck’s recent acquisition of Schering-Plough.

Merck says “this inquiry is part of a broader review of pharmaceutical industry practice.” That’s true: at least 10 other companies are suspected of doing the same thing, and an 11th — SciClone (SCLN.O) popped up Tuesday.

However, the fuller context is that the letters are more serious than a “review.” A DOJ assistant attorney general warned an assemblage of pharma industry lawyers last year that DOJ “will be intensely focused on rooting out foreign bribery in your industry.” A similar criminal investigation has already led to the imprisonment of one executive at Johnson & Johnson (JNJ) in the U.K., and J&J admitted in its most recent 10-Q that it had violated anti-corruption laws and that investigations are under way in several nations, including the United States.

via Acquisition May Create Headaches for Merck in Foreign Corruption Probe | BNET.