cross-posted from: https://infosec.pub/post/41122324
Google did not admit wrongdoing in the settlement of the class-action case, which accused the firm of “unlawful and intentional interception and recording of individuals’ confidential communications without their consent and subsequent unauthorized disclosure of those communications to third parties.”
Make it more than they earned, plus a large percentage, and factor in how likely they were to get caught. At the size of Google, companies are essentially just big statistics machines, doing risk/reward calculations. Imagine you have an illegal business opportunity that could make you $100M in profit per week. Your risk of getting caught is estimated at ~25% per week. And your fine for getting caught is $150M per week. Even though the fine is higher than the expected profit, your net profit per week averages out to +$62.5M.
That is the original $100M, minus the $150M*25% (or $37.5M total). Yes, some weeks will be a loss. But if the numbers stay consistent, you’ll make more in the long term simply due to the fact that you don’t get caught every time. As long as you manage to avoid getting caught for at least two weeks, (which shouldn’t be difficult, considering the 25% estimated chance of regulators catching on) you’ve already made enough money to cover the fine.
Of course the company will do the illegal thing, because the math says it will likely be profitable. And even if they’re caught, it was just the price of doing business. As long as they made more than the expected fine over the given time period, they have profited.