Is the GMail Model Legally a Wiretapping Scheme?

According to at least one court, it may well be.  From Wired:
A federal judge today found that Google may have breached federal and California wiretapping laws for machine-scanning Gmail messages as part of its business model to create user profiles and provide targeted advertising.

The decision by U.S. District Judge Lucy Koh was rendered in a proposed class-action alleging Google wiretaps Gmail as part of its business model. Google sought to have the federal case in California dismissed under a section of the Wiretap Act that authorizes email providers to intercept messages if the interception facilitated the message’s delivery or was incidental to the functioning of the service in general.

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