Google Inc

A suburban New York politician has dropped a federal lawsuit that had claimed the search engine company Google Inc. profits from child pornography. Jeffrey Toback, a member of the Nassau County Legislature, filed suit in May, claiming Google had "paid links" to websites containing child pornography. Google denied the allegations.

Internet search giant Google Inc. plans to open an office in Ann Arbor, Mich., that would employ 1,000 people. The Mountain View, Calif.-based company will use the facility to handle sales and operations for its AdWords online advertising division, the Michigan governor's office said.

Found: geeks on the beach. Google Inc. has spread out like a beach towel in Santa Monica. What started in 2003 with a few dozen employees has grown into the company's fourth-largest office and fourth-largest engineering center in the U.S., with 300-plus employees in three buildings. "We have the best weather of any office in Google," said Thomas Williams, the engineering director who heads the office.

SAN FRANCISCO - Yahoo Inc. Chief Executive Marissa Mayer is attempting a bold - and risky - strategy to turn around the struggling Internet giant with the $1.1-billion acquisition of Tumblr, a trendy social blogging service popular with teens and young adults. Though Yahoo still has a massive online audience, it's losing its grip on young people and how they consume the Internet on mobile devices. Tumblr, a 6-year-old company with 100 million users who share links, photos and blog posts, represents the new guard of the Internet.

Google Inc. boosted the amount it plans to spend on computers and offices this year by 17% as it adds new services and expands outside the U.S. Capital spending will rise to more than $700 million this year, up from a May forecast of $600 million, Google, based in Mountain View, Calif., said in a filing with the Securities and Exchange Commission.

Google Inc. must defend an infringement suit filed by American Airlines, which claims its trademarks are violated by the company's advertising program. The motion by the search-engine giant to dismiss the case was denied in federal court in Fort Worth. American, a subsidiary of AMR Corp., is the biggest U.S. firm to sue over Google's AdWords program, which lets firms place ads next to search results.

Google Inc. is expected to unveil today an online payment system called GBuy, which analysts say will allow merchants to accept payment for services and could become a broad-based alternative to EBay Inc.'s popular PayPal. Danny Sullivan, editor of SearchEngineWatch.com, said he expected Google to target online merchants rather than consumer-to-consumer payments, which is PayPal's traditional strength.

Google Inc. aims to close the gap between the classic way people get e-mail -- sitting at a computer -- and the slow-as-molasses reality of receiving e-mail on cellphones, the company said. The Web search leader, based in Mountain View, Calif., is introducing a custom version of its Gmail service that can run on any phone with Java software. "Because it is an application and not running through a browser

Search engine Google Inc. lost a bid Tuesday to dismiss a lawsuit over claims it overcharged for advertisements that accompany Web search results. The lawsuit was filed by CLRB Hanson Industries. Google sells the ads in auctions in which companies bid the amount they're willing to pay when users click on ads. U.S. District Judge James Ware in San Jose let two of four claims by CLRB stand.

Google Inc. said it extended time for negotiations with Time Warner Inc.'s America Online unit over a $1-billion investment in AOL and a related advertising agreement. The companies agreed to extend the time for closing the deal to today and may put off the closing date again, Google said in a regulatory filing. In exchange for its $1 billion, Mountain View, Calif.-based Google would receive a 5% stake in AOL.