Eric Schmidt's hypothetical "evil room"


Imagining life at Bizarro Google.

Schmidt says consumers would revolt if Google started acting evil. Photo: Google

Schmidt says consumers would revolt if Google started acting evil. Photo: Google

On Wednesday morning Google (GOOG) CEO Eric Schmidt and co-founder Sergey Brin met with a group of reporters and talked about a number of issues, from the outages its Gmail service has experienced to its efforts to digitize books to the company's culture.

Schmidt repeatedly deflected questions about the competition, saying Google prefers to focus on, well, Google. (In response to a question about Microsoft (MSFT) CEO Steve Ballmer's assertion that adoption of Google's Chrome operating system amounts to little more than a "rounding error," Schmidt quipped: "I don't respond to Steve Ballmer questions.")

But Schmidt did offer a long explanation of why Google isn't Microsoft — like when it comes to hemming customers in to its technologies and systems.

"There are many, many reasons why we are not going to be like Microsoft," he said. "The first has to do with the culture of the founders, the culture of the company, the value systems.

"The second has to do with the majority of the users, and usage is one click away from moving to a competitor, which is not true of more embedded platforms in high tech. It is very difficult to move out your database system, it is very difficult to move out of Windows, for technological reasons whereas it is quite easy to move out of these online services."

He then began a riff on Google's "Don't be evil" motto, in which he talked about a hypothetical world, let's call it Bizarro Google, in which the executives decided to use their power for the dark side. "If somehow we went into a room with the evil light…and we announced an evil strategy, we would be destroyed," he said. "There is a fundamental trust relationship between Google and its users."

Schmidt added: “We have not yet found the evil room on our campus."

Schmidt and Brin cited example after example of how the company fights for consumers, and how innovation at Google has unlocked new products and services in entire industries. A favorite example is Google's Android operating system for mobile devices. (The Wall Street Journal is reporting that Dell (DELL) will build a mobile phone for AT&T (T) using the Android platform.) Brin noted that it wasn't until Google released its software development kit for Android — a set of tools that allow developers to create applications for Android-powered phones — that Apple (AAPL) enabled third parties to build applications for the iPhone.

But whether such pro-consumer behavior means Google is always on the side of angels is a topic that the tech giant's competitors would gladly debate.

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All tech companies are in business of making money and they use all sort of strategies to win customers and partners. Google is no different than Apple or Microsoft or IBM. In fact Google gets more aggressive in making money then most other companies

Posted By Sammyr Smith, UT: October 9, 2009 11:29 AM

Does Google really believe that they spurred Apple on to develop iPhone SDK? Android was announced in November 2007; Apple declared their intention to provide a third-party SDK the month before.

Posted By Lawrence, Cambridge, MA: October 9, 2009 11:16 AM

And trying to steal the copyright of every non-American author via US courts is not evil? Google is the quintessential example of a Jedi Knight who has succumbed to the dark side of the force and now seeks to rule all.

Posted By Bob, Ak, NZ: October 9, 2009 5:20 AM

Google's relationship with China is evil…

…but even worse is the kind of rationalization that led them to believe it's not.

But it should already be clear in the way that Mr. Schmidt conducts his interview (sanctimoniously refusing to answer whatever questions he pleases ) that as with many corporate executives reality is simply whatever Mr. Schmidt wants it to be.

Give me a company that sells cigarettes and guns any day over a company that fools itself into believing it's something it's not.

At least the former is honest about what it does.

Posted By Seth, Brooklyn, NY: October 9, 2009 12:34 AM

There is nothing hypothetical about google's evil room.

From blatent plagiarism, first of web content and now of books, google's mission is to steal the intellectual property of the entire planet and present it as if owns it.

Add to this that most of it's ad revenue comes from the equivalent of Craig's List adult services ads and you see there is really no question where google stands.

For google's customers, the goodwill comes from the free not from the 'do no evil'

Posted By BJ, Chicago, IL: October 9, 2009 12:16 AM

Not sure why you guys are slamming google. They start projects and give them out to the public for no cost to better the world. I dont see any other companys giving anything out/researching unless its so they can get tax cuts. Good on em once agian.

Posted By Keith, Chicago, IL: October 8, 2009 8:18 PM

not evil?

Caving into the demands of censorship of the Chinese governement and turing over user data

extreme evil

Posted By kate, vancouver bc: October 8, 2009 2:40 PM

The comments pretty much reinforce for me that conspiracy theorists are apparently incapable of rational thought. This article is about Google's "Do No Evil" motto. The press conference was probably a bit longer than the snippets of information provided in the article. Do you see the difference?

Blogging is ruining journalistic integrity, and the geeky masses are losing their reputation for discerning intellect.

Posted By Liz, Philadelphia, PA: October 8, 2009 2:06 PM

I see, somehow violating copyright laws is not a violation of trust. (Have you ever looked at the books on google? There are very large sections of the books, not just a few pages – thus the lawsuits.)

"Brin noted that it wasn't until Google released its software development kit for Android — a set of tools that allow developers to create applications for Android-powered phones — that Apple (AAPL) enabled third parties to build applications for the iPhone."

Did Brin also note that Windows based mobile devices already supported 3rd party applications? Great innovation! Who would have thought, an OS that includes a kit for developers!

Posted By Ashi S., Evanston IL: October 8, 2009 12:10 PM

"The louder he talked of his honour, the faster we counted our spoons."
- Ralph Waldo Emerson

Posted By Brian W, Lewisville TX: October 8, 2009 11:11 AM

I find this laughable. Not evil? How about data mining?

Just read a few of Google's EULA's and the "Do no evil" motto goes right out the door. Their Google Chrome EULA is a perfect example. They force you to have it auto-updated. You're technically not allowed to use Chrome unless you allow it to be auto-updated. Nothing on my PC auto-updates because that's how things BREAK! They also state that in the future they may put ads IN THE BROWSER itself. Their EULA's go on from there. Do yourself a favor and actually read the EULA's for once. They're quite enlightening.

"Do no evil" my tail end. They're just like every other large corporation. In the end it all comes down to money and if they have to stomp on the little guy they won't care.

Posted By Jacen, Mobile, AL: October 8, 2009 10:52 AM

Hmmm,
Can't find an evil room in any of your houses? That's funny. If all your houses lack windows, perhaps you need to turn on a light or two.

Posted By Joe, Vancouver, WA: October 8, 2009 2:10 AM

Only the guilty claim their innocence

Posted By Dave H Detroit Mi: October 7, 2009 11:22 PM

It appears this comment was removed. I've posted it back and give the author credit!

Schmidt and Bren, here's what's Bizarro, it involves your first proposed acquisition of a publicly traded company. Under NDA, you hide your customer relationship with them for over a year. You cap the stock price at your low ball offer, while 36 hours later they announce their first ever profitable quarter. You forbid them from shopping the company for a fair price. You forbid them from licensing their VP8 tech to other new customers. How does this deal fly…..I'll tell you how. In your 'most evil' deed in this deal, you serve millions to the interim CEO, board members and key engineers with employment contracts, retention bonuses, severance payments, vesting existing BOD options, purchasing BOD restricted shares and then add grants of thousands of GOOG restricted stock units….all of this to gain their stamp of approval on the paltry offer. Google, you have clearly used your power to put the screws to On2 shareholders and these backroom deeds will get world wide attention. This will put a bright light on what is indeed an 'evil strategy'. Here's a flash for you, in On2 shareholders, there is NO fundamental trust in ANYTHING Google!
Posted By Bruce, Auburn Hills, MI: October 7, 2009 9:05 PM

Posted By Frank H, Raleigh, NC: October 7, 2009 9:51 PM

It's not their fault about what happened at YouTube before they acquired YouTube (google "The Fourth YouTuber") — and I don't really blame Brin, specifically, but whose fault is it when Google erodes privacy and enables criminal activity? If we don't hold them responsible, then who IS responsible for that sort of "evil" that, indeed, Google does.

Posted By H. Elwood Gilliland III, Pittsburgh, PA: October 7, 2009 9:42 PM

Schmidt and Bren, here's what's Bizarro, it involves your first proposed acquisition of a publicly traded company. Under NDA, you hide your customer relationship with them for over a year. You cap the stock price at your low ball offer, while 36 hours later they announce their first ever profitable quarter. You forbid them from shopping the company for a fair price. You forbid them from licensing their VP8 tech to other new customers. How does this deal fly…..I'll tell you how. In your 'most evil' deed in this deal, you serve millions to the interim CEO, board members and key engineers with employment contracts, retention bonuses, severance payments, vesting existing BOD options, purchasing BOD restricted shares and then add grants of thousands of GOOG restricted stock units….all of this to gain their stamp of approval on the paltry offer. Google, you have clearly used your power to put the screws to On2 shareholders and these backroom deeds will get world wide attention. This will put a bright light on what is indeed an 'evil strategy'. Here's a flash for you, in On2 shareholders, there is NO fundamental trust in ANYTHING Google!

Posted By Bruce, Auburn Hills, MI: October 7, 2009 9:05 PM

Interesting that Eric Schmidt needs to spend significant time explaining why Google is not *really* evil…

Could it be related to the significant negative press they are receving on SideWiki, as well as the controversial Google book deal?

Posted By John, Canton, MI: October 7, 2009 7:01 PM

By not allowing On2 to announce a Google as a customer from 2005 forward, and a host of other indiscretions…not the least of which is screwing On2 shareholders with a shorted down .60 per share offer..Ole Schmidt shouldn't have to look too far to find the Evil Room, unless he's visually impaired…

Posted By Dan, Mackinac Island, MI: October 7, 2009 5:16 PM

Perhaps you're renting a room from On2??

Posted By John, Madison WI: October 7, 2009 4:26 PM
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Stephanie Mehta

Stephanie N. Mehta
Stephanie N. Mehta is an assistant managing editor at FORTUNE, overseeing technology coverage for Fortune and Brainstorm: Tech. She also is a co-chair of the annual Brainstorm: Tech conference, an annual gathering of tech and media thinkers. Previously, Mehta spent seven years as a tech writer at FORTUNE covering the telecom and media industries. She also has worked for the Wall Street Journal and the Virginian-Pilot in Norfolk, Va.
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