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Preliminary FTC Position: Google Created Illegal Monopoly

October 15, 2012

[ by Melanie Gretchen ]

The Federal Trade Commission has trust issues when it comes to Google.
 
At the FTC, 4 of 5 commissioners believe that that Google illegally used its dominance of the search market to hurt its rivals.  It believes that an antitrust case should be brought against Google Inc, three people familiar with the matter said.   All three sources declined to be named to protect working relationships.
 
The case against Google:
  • Google refuses to share data that would allow advertisers and developers to create software to compare the value they get on Google to advertising spending on Microsoft's Bing or Yahoo.
  • Google rivals specializing in travel, shopping and entertainment have accused Google, the world's No. 1 search engine, of unfairly giving their web sites low quality rankings in search results to steer Internet users away from their websites and toward Google products that provide similar services.
  • Industry views: (i) A long list of companies have been complaining to the FTC; (ii) consumer reviews website Yelp and comparison shopping website Nextag have both complained about Google during open hearings in Congress
FTC Chairman Jon Leibowitz said in mid-September that he expected a decision in the case by the end of the year.  Two of the sources also estimated a decision could come soon, in late November or early December.  In the event of:
  • success by the FTC: the agency and Google could hammer out a settlement that resolves the issues
  • failure to settle negotiations: the search giant could find itself in a lengthy, expensive court fight.
For its part, Google has repeatedly denied any wrongdoing.  During a congressional hearing in September 2011, Google Executive Chairman Eric Schmidt denied that the company manipulated its search results, before the Senate Judiciary Committee's antitrust panel.
 
"May I simply say that I can assure you we've not cooked anything."
 
For further details, go to [Reuters, 10/12/12].