NEW YORK (CNNMoney) - Google HAS Agreed to a $ 500 million settlement with the US Department of Justice for allowing online Canadian pharmacies Illegally to advertise drugs to US Consumers.
The settlement, Which Represents The Revenue Received by Google for selling ads-through the AdWords program and the ITS Estimated revenue from the Canadian pharmacies Got Their sales to US Consumers, WAS one of the Largest ever in the United States, According To the DOJ.
"This IS about the investigation patently unsafe, unlawful importation of prescription drugs by Canadian pharmacies online, with Google 's knowledge and support, into the United States, US Directly to Consumers, " Said US Attorney Peter Neronha.
Said Neronha ET Hopes the settlement "gets the focus " of Other Potential violators as well, and He Will Believe The settlement limit the Ability of "rogue online pharmacies " to sell drugs in the United States.
The Justice Department Said Google (GOOG, Fortune 500) as early as aware WAS 2003 That Were Illegally Canadian pharmacies shipping prescription drugs into the United States. Took steps to block Google pharmacies in Canada from Countries Other than advertising in the United States, intended to allow Continued Canadian pharmacy ads to target US Consumers.
Eventually Google stopped the practice in 2009, the company ounces Became aware of the US Attorney 's Office ' s investigation
"We banned the advertising of prescription drugs in the US by Canadian pharmacies Some time ago, " a Spokesman Said Google in a prepared statement. "However, it 's Obvious with hindsight That we shouldn ' t Have Allowed These Ads on Google in the first place. "
The news of the pending settlement Unveiled in first WAS A regulatory filing in May, catching by surprise Many.
Google set aside the $ 500 million in the first quarter, profit down for Revising icts That Period, Which ended March 31, 2011. It Said It Earned $ 1.8 billion, or $ 5.51 per share, down from the $ 2.3 billion, or $ 7.04 per share, That it INITIALLY Reported in April.
The search giant is No stranger to investigations by Regulators from around the world.
The Federal Trade Commission in June Google Formally Notified That It Is Investigating the company. The company faces similar Ongoing Scrutiny in year antitrust investigation by the European Commission.
Also, the Department of Justice Heavily scrutinized the company 's purchase of flight data software company ITA, and the DOJ IS Currently Studying Google ' s Proposed $ 400 million purchase of digital advertising TOOLMAKER Admeld.
Next up, Regulators Will analyze the company 's Proposed Acquisition of Motorola Mobility (MMI).
The DOJ 's probe of Google ' s AdWords dirty HAD ITS origins in year Entirely Separate investigation.
The agency INITIALLY Said It Was Looking into a Financial fraud case, the main target of Which Fled Mexico. While a fugitive, ET Began to use Google 's AdWords to advertise the illegal drug sales. After Being apprehended in Mexico and Returned to the United States, HE Began Cooperating with law enforcement agents and Provided information about historical use of Google ads.
That Prompted investigators to set up a sting, undercover Creating websites for the illegal purpose of advertising prescription drug sales-through AdWords.
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