Facebook's plot to smear Google has backfired, as the two companies compete in a tit-for-tat fight in several lucrative industries.
The Palo Alto, Calif.-based social networking giant admitted to hiring Burson-Marsteller, a public relations firm, to develop a smear campaign against Google, citing major privacy concerns by the popular search engine. The agency planted negative stories about Google, fearing Google may be developing a social-networking site of its own.
Burson-Marsteller approached security blogger Christoper Sogholan in hopes that he would investigate Google's privacy policy and reveal holes of Google "cataloging and broadcasting every minute of every day of user information without their permission." But Sogholan refused, saying there was little evidence to support their claim.
He later posted his e-mail correspondence, revealing the PR company's plans.
According to a Facebook spokesperson, the company was concerned of Google's privacy policies, as well as Google's attempts to use its data for a social-networking service of its own.
Facebook's smear campaign may be the most embarrassing example yet of an escalating rivalry between the two tech giants. It comes as Google prepares to bolster its own social network service, dubbed "Google Circles."
So far, Google has made few inroads into social networking, aside from "Google Buzz," which failed to generate any buzz at all. Social media has been a weak spot for Google, even though it boasts the world's largest search engine. But Google plans to address this weakness with Circles, encroaching on Facebook's home territory.
Their rivalry extends beyond social networking. Whereas Microsoft was long seen as a competitive threat to Google, Facebook is the new target, after becoming the Internet's fastest growing site. Both companies are introducing new services at breakneck speed, creating whole platforms of mobile and Internet experience to rival one another.
Beyond social networking, Facebook has introduced a revamped version of its messaging system to compete against Google Mail. In response, Google blocked a Facebook feature that allows users to automatically import Gmail contact data to Facebook.
Facebook relies on such imported e-mail services to help users find new friends.
In retaliation, Google launched "+1", its answer to Facebook's "like" button.
With both companies growing and branching out into all kinds of services ranging from messaging to local "
daily deals," the growing rivalry doesn't look to let up any time soon. The stakes are too high: Facebook's advertisement revenue is forecasted to overtake business from Google and make it the world's largest online advertising display.
