Today, regulators will announce a $500 million settlement with Google over charges related to advertisements for illegal online pharmacies. The pharmacies appearing in Google ads were operating outside the law, leading to a Department of Justice investigation into Google’s advertising practices – an investigation which decreased Google’s profits by 22%, reports the The New York Times . The investigation began in May, with government officials trying to determine how illegal ads such as these continually showed up in Google’s search results. Google had previously noted in the fall of 2010 that it was struggling with with the problem, equating it to a “cat-and-mouse game:” …As we and others build new safeguards and guidelines, rogue online pharmacies always try new tactics to get around those protections and illegally sell drugs on the web. In recent years, we have noticed a marked increase in the number of rogue pharmacies, as well an increasing sophistication in their methods. This has meant that despite our best efforts—from extensive verification procedures, to automated keyword blocking, to changing our ads policies—a small percentage of pharma ads from these rogue companies is still appearing on Google. But complaints that it just didn’t know how to stop the situation have not been good enough for the U.S. government, which is now holding websites liable for any illegal advertisements shown on their pages. Obviously, such a decision has far-reaching consequences beyond those of just the illegal pharmacies, as Google faces threats from a number of illegal and malicious entities who want to leverage its search engine to expose unsuspecting users to their ads. Traditionally, Google itself has filed lawsuits against advertisers it suspected of breaking its rules, but this has clearly not been enough of a deterrent. At the time of the government investigation, Google set aside $500 million in advance of the government’s ruling in the matter, which trimmed its net income to $1.8 billion, or $5.51 a share, in the period. U.S. Attorney Peter Neronha of Rhode Island is holding the press conference on Wednesday to announce the final outcome. The settlement means Google will not face further criminal prosecution for profiting from ads promoting illegal pharmacies. Crunchbase GOOGLE Company: GOOGLE Website: http://google.com Launch Date: 7/9/1998 IPO: 25/8/2004, NASDAQ:GOOG Google provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers a plethora of... Learn more