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¶ … Antitrust Investigation: Google
It was reported in 2011 that the 'Wall Street Journal' reported that the FTC was preparing a major antitrust investigation into Google's core search advertising business. Specifically stated by the Wall Street Journal was:
"The new FTC investigation . . . will examine fundamental issues relating to Google's core search advertising business, which still accounts for the overwhelming majority of its revenues. Those will include whether Google -- which accounts for around two-thirds of internet searches in the U.S. And more abroad -- unfairly channels users to its own growing network of services at the expense of rivals'." (Schonfeld, 2011, p.1)
It is reported that the issues was that Google "was using its market power 'in search to push consumers to its own services." (Schonfeld, 2011, p.1) Stated as the most prominent example is that of "Google Places, which comes up at the top of search results for pretty much every local search, whether or not it is the best result." (Schonfeld, 2011, p.1)
I. Reasons for Antitrust Suit
According to the Huffington Post "The problem by the Federal Trade Commission, confirmed…will require Google to convince regulators that its closely guarded recipe...
Some of these commercial messages appear shaded in color, at the top of the search results page, while others are stacked in the right hand column." (Huffington Post, 2011, p.1) According to the Huffington Post "The FTC's investigation threatens to put Google on the same course as nemesis Microsoft, which was the target of a Justice Department lawsuit that began in the 1990s and dragged into the next decade. That case alleged that Microsoft used its dominant Windows operating system to kill competing software makers." (2011, p.1) Proving that Google abused its dominance is reported to involve regulators getting Google to "turn over sensitive documents that it has resisted sharing in the past. And Google probably won't be shy about fighting for the right to adjust its search formula to deliver more useful results to its audience." (Huffington Post, 2011, p.1) Manne (2013) reports that the case against Google "rested on certain assumptions about the functioning of the markets in which Google operates. Because these are…
Bibliography
Franceschi-Bicchierai, L. (2012) Congressman Warns FTC Against Investigating Google. 13 Jan 2012. Mashable. Retrieved from: http://mashable.com/2012/10/16/congressman-warns-ftc-against-investigating-google/
Google Confirms FTC Antitrust Investigation (2011) Huffington Post. 24 Jun 2011. Retrieved from: http://www.huffingtonpost.com/2011/06/24/google-confirms-ftc-antitrust-investigation_n_883951.html
Manne, G. (2013) FTC Deservedly Closes Google Antitrust Investigation Without Taking Action. 3 Jan 2013. Retrieved from: http://truthonthemarket.com/2013/01/03/ftc-deservedly-closes-google-antitrust-investigation-without-taking-action/
Schonfeld, E. (2013) The Knives are out for Google as FTC Prepares Antitrust Investigation. 31 Jan, 2013. The 2012 Crunches. Retrieved from: http://techcrunch.com/2011/06/23/google-ftc-antitrust/
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