Google’s Drug Bust

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In the largest federal forfeiture of funds in US history, the largest pill pusher in the US has been held accountable. At a ‘fine’ of $500 million dollars, Google’s reign as the pill pusher is over. I guess calling Google a pill pusher is a bit of a stretch, but the way the news is coming out over the course of the day it’s almost like they were running the largest operation in US history.

The main points of the story would be, Google has AdWords, the US has expensive medications. Enter the opportunity for online pharmacies to sell the same medications for a fraction of the cost and voila! Canadian online pharmacies found that a lucrative market existed using Google’s AdWords platform to advertise to Americans who needed medication, yet lacked the funds to pay for them offered on the US side of the line. While the US government lacked the desire to pursue individuals who purchased the pills online, they focused their attack on the method by which they were advertised.

“This investigation is about the patently unsafe, unlawful, importation of prescription drugs by Canadian on-line pharmacies, with Google’s knowledge and assistance, into the United States, directly to U.S. consumers,” said Peter Neronha, the U.S. Attorney for the District of Rhode Island in a written statement. “It is about holding Google responsible for its conduct by imposing a $500 million forfeiture, the kind of forfeiture that will not only get Google’s attention, but the attention of all those who contribute to America’s pill problem.”

By that statement, I guess Canada and Google are to blame for all of the pill users in the US. A little interesting point, the $500 million that Google has to pay out? Just a little over 20% of their earnings.. from the first quarter. I don’t think they’re really strapped for cash in the end. It just turned out that us Canadians were a little more clever with online marketing and Google provided the means for Americans to continue getting their meds at a reasonable price. What’s happening now is anyone’s guess.