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Google Settles Click Fraud Case (for more information on the case see Update 32 and 38)

An Arkansas judge approved a $90 million settlement between Google Inc. and advertisers who claimed the Internet search engine company improperly billed them for clicks that didn't lead to genuine customers seeking their products (Google charges advertisers a fee each time a user clicks on an ad that is displayed on the search firm's website). Google was accused of not doing enough to protect advertisers from "click fraud" abuse.

The ruling can be found here.

In a court-ordered report, Alexander Tuzhilin, a professor of information systems at New York University, assessed Google's click fraud control mechanisms. He came to the following conclusion: "Google put much effort in developing infrastructure, methods and processes for detecting invalid clicks since the Click Quality team was established in 2003. These efforts were not perfect since Google missed certain amounts of invalid clicks over these years and it adhered to the doubleclicking policy for too long in my opinion. However, click fraud is a very difficult problem to solve, Google put a significant effort to solve it, and I find their efforts to filter out invalid clicks as being reasonable, especially after the doubleclick policy was reversed in March 2005."




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