Google’s interest: protecting freedom of speech and privacy
In an official blog post, Google states that it is no longer willing to compromise with the Chinese government on censorship — or at least not to the same extent as it has been . It may even consider pulling out of China altogether (doubtful given the number and size of business opportunities there).
Without saying so, Google is implying that the Chinese government may have been trying to hack the GMail accounts of human rights activists and their supporters in China and abroad. That, along with the censorship imposed by the post-communist government, is the moral high-ground on which Google stands.
Beyond the moral reasoning, there is a strong business motivation for Google to play hard ball with the Chinese government. Google’s core business model is compatible with neither censorship nor lack of privacy. Censorship undermines the perceived value of its search product, which it uses to collect data. And lack of privacy reminds people that Google holds a *lot* of their personal data in a form that can readily be mined, and that even if Google’s primary use of it is relatively benevolent (ad targeting), there still is a huge risk to the user: plain old Orwellian 1984-ism.
While these two reasons would not be strong enough motivation for most users to ditch Google and its brethren (in favor of what?), they might provide the basis for legal or government-level action in the US, Canada and the EU aimed at more strictly regulating Google’s main business activity — the aggregation of personal data for the purpose of targeting ads.
That could be the real threat perceived by Google.
