Google filed an amended IPO this week to add privacy concerns to the risk factors affecting the company’s prospects. The filing directly cited Google’s Gmail offering and the privacy issues surrounding its release.

In the amended filing Google states, "Concerns about our collection, use or sharing of personal information or other privacy-related matters, even if unfounded, could damage our reputation and operating results."

Interestingly in the filing Google also cites "Don’t Be Evil" as an operating principle of the company and most especially in regard to Google users trusting the search engine’s system to be non-bias in the results it produces. In a section under the same title the company states, "Don’t be evil. We believe strongly that in the long term, we will be better served—as shareholders and in all other ways—by a company that does good things for the world even if we forgo some short term gains. This is an important aspect of our culture and is broadly shared within the company."

The section continues, "Google users trust our systems to help them with important decisions: medical, financial and many others. Our search results are the best we know how to produce. They are unbiased and objective and we do not accept payment for them or for inclusion or more frequent updating. We also display advertising, which we work hard to make relevant, and we label it clearly. This is similar to a well-run newspaper, where the advertisements are clear and the articles are not influenced by the advertisers’ payments. We believe it is important for everyone to have access to the best information and research, not only to the information people pay for you to see."

In the amended filing the Gmail privacy issue and its controversy was also addressed under the section "Making the World a Better Place." Google cites within that section their belief that Gmail protects a user’s privacy. The company states, "We know that some people have raised privacy concerns, primarily over Gmail’s targeted ads, which could lead to negative perceptions about Google. However, we believe Gmail protects a user’s privacy. By releasing services, such as Gmail, for free, we hope to help bridge the digital divide. AdWords connects users and advertisers efficiently, helping both. AdSense helps fund a huge variety of online web sites and enables authors who could not otherwise publish."

The company launched the two additions to its search engine, which were previously only available to larger websites and portals such as AOL, Earthlink and BellSouth.  The site-flavored Google search program is an extension of the combined WebSearchT and Google AdSenseT for search programs.

Google added Adsense for Search and the availability of site-flavored Google Search. Adsense for Search lets web publishers place a Google search box on their website, giving users Google search results and keyword-targeted advertisements. Site-flavored Google Search is a Google Labs project that gives websites in Google’s words, a "flavored" search box that delivers search results that are customized to reflect the content of the website. The company also said the additions will provide publishers a shared revenue opportunity in ad click-throughs.

Google stated in its original IPO filing Risks section that it considers its primary competitors to be Microsoft and Yahoo. With Microsoft developing web search technology and Yahoo’s acquiring of Overture Services, Google said it expects Yahoo will become an "increasingly significant competitor". Interesting to note is that since June 2000, Yahoo has used, according to Google, "our web search technology on its web site to provide web search services to its users". However, Google states in the filing that it has elected to terminate the search agreement, effective July 2004. Google said Yahoo revenue accounted for less than 3% of its net revenues for the year ending December 31, 2003.