Switchfast Blog: The Future of IT
FTC Launches an Antitrust Investigation on Google
Monday, June 27, 2011 by Michelle Hartley
For several months, The Federal Trade Commission has been arming
itself with a multitude of information concerning whether the way
Google operates its search engine business is legal competitive
behavior or not. They are now prepared to issue subpoenas to Google
and pursue an antitrust investigation. While not the first
probe into Google's business, this investigation is certain to be
the largest. The Wall
Street Journal's article on the matter, "Feds to Launch Probe of Google," states "The
civil probe, which has the potential to reshape how companies
compete on the Internet, is the most serious legal threat yet to
the 12 year-old company." This legal matter is already being
compared to the magnitude of the Microsoft antitrust trial from the
late 90's.
Public complaints by competitors have addressed the idea that
Google does not compete on the same level as some of their rather
worthy competitors. Sites like Yelp.com and Citysearch have said
that Google unfairly promotes their own service over theirs and in
turn, locks out the competition. For each market that Google
has a hand in, they are the highest ranked search result and
therefore take away business from their competitors. In this case,
manipulation of search results is considered an anticompetitive
act.
Google has rested its defense in its original mission. Their
ranking decisions and process is designed to benefit its users.
Google states that they understand because the nature of their
business and their immense success, not everyone will be happy with
their search ranking. In addition, Google defends that there are
other search options available and used quite often. They defend in
a blog post that they have no lock on the search market and
competition is "only one click away." Google states they have full
trust in the way they operate their business and their principles
will "stand up to the scrutiny."
The FTC issuing these subpoenas allows the public and Google to
know that they have a good amount of concrete evidence or else they
would not move forward with an entire formal investigation. If the
FTC finds Google guilty of these allegations they will not receive
fines but cease-and-desist orders against each behavior. In
addition, the European Commission opened its own antitrust
investigation into Google's search business last year. While there
will be no monetary consequence associated with the investigation,
there is a significant threat to the reputation and very nature
under which Google operates.
As the antitrust investigation unfolds, we will keep you updated
with evidence the FTC presents and the defense Google lies out.
Until next time -
Michelle Hartley
Switchfast Technologies
Chicago IT Support &
Consulting
DC IT Support &
Consulting
Outsourced Marketing Services
Leave comment: