Free market solutions to today's technology issues

This week Google entered into yet another market. Now that the company dominates the search market – they continually are entering new markets: from news publishing, energy trading, GPS, mobile phones and even operating systems; it seems like Google is always entering new markets. This week Google launched a new social networking site “Google Buzz” earlier this week. The new service allows users with a Gmail account to post real-time, geo-located updates, as well as pulling in content from Flickr, Picasa, YouTube and other networks.

The Washington Post pointed out how the geo-location features in buzz goes as far as listing your location by name:

Buzz appears more ambitious, and a tad creepier, on a mobile device. It ties into the location-aware capabilities Google has built into such sites as Google Maps to determine your location, then goes a step further to try to map those coordinates to real-world places and establishments — so instead of placing you at 1600 Ampitheatre Pkwy. in Mountain View, it knows you’re at the Googleplex.

Googles business model requires its users to place an enormous amount of trust in the company. They offer you products and services in return for your personal information. They already are collecting an unprecedented amount of information on Google users. And Buzz takes it to the next level – including give Google exclusive ownership and use of this data in perpetuity.

Most of all, Buzz’s mobile features require placing a phenomenal amount of trust in Google: You’re not only letting its computers tell you what’s worth knowing on the Web, read your e-mail and keep your calendar, now you’re going to let them follow you around in the real world.

Google has typically taken an all-or-nothing approach to privacy. But Googles Buzz is a social network that is limited to Gmail users, and excludes some popular services like Facebook. Google may have a challenge convincing users to give up even more privacy to use this service.