antitrust

The Federal Trade Commission has issued a statement denying the WSJ‘s suggestion that the decision to clear Google of anti-competitive behavior was “a close call.”

The WSJ yesterday obtained part of one of the investigative reports, which included a sentence reading “Although it is a close call, we do not recommend that the Commission issue a complaint against Google for this conduct.”

As we stated when the investigation was closed, the Commission concluded that Google’s search practices were not, “on balance, demonstrably anticompetitive.”

Contrary to recent press reports, the Commission’s decision on the search allegations was in accord with the recommendations of the FTC’s Bureau of Competition, Bureau of Economics, and Office of General Counsel.

The FTC describes the WSJ story as “misleading” … 
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A European Parliament motion calling for the breakup of Google, separating out the search business from the company’s other activities, has been overwhelmingly approved, reports the WSJ.

In a vote in Strasbourg, 384 legislators voted in favor of the controversial initiative, with 174 against and 56 abstentions […]

“Clear adoption by the EP of Digital Single Market motion, including unbundling for search engine if needed,” tweeted Ramon Tremosa I Balcells, a lawmaker from Spain who backed the proposal.

The vote comes just a day after a separate European call for the controversial ‘right to be forgotten‘ ruling to be extended to google.com as well as the European versions of its sites … 
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Google’s ongoing battle with the European Union may have just taken a nasty turn. A new draft motion from the European Parliament is looking to separate the outfit’s search business from the rest of its operations. This comes after years of accusations against the company claiming that it exercises adverse practices, showcasing its own products while burying its competition.

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News Corp. recently issued a letter to the European Union blasting Google’s search and advertising practices. The correspondence also requested that the EU enforce stricter policies against the software company. News Corp. chief executive Robert Thomson wrote that Google was “willing to exploit its dominant market position to stifle competition.”

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Google has been battling allegations of burying rival companies in its web search results while promoting its own services, such as Maps and YouTube. The search giant was close to avoiding costly fines from the European Commission, but following negative feedback from its competitors, Google will now have to take additional measures to settle this multi-year investigation.

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TechCrunch has obtained leaked documents from within Yelp that accuse Google of manipulating search results to promote Google+ content over Yelp content. The report alleges that Google is boosting its own products on its search engine in the United States, but not in Europe where it is being slammed with antitrust complaints from European Union regulators.
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Consumer rights group Hagens Berman has filed a new class-action lawsuit against Google alleging that the company’s rise to dominance in the search market was only driven by its inclusion as the default search option in Android, and that Google’s insistence that corporate Android licensees include the company’s first party software has artificially driven up the price of mobile phones.

To better explain exactly what the company is actually claiming, let’s break down a few quotes from the official press release on the lawsuit.

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Photo: npr.org

After more than three years of investigations and negotiations, Google and the European Union anti-trust authorities have finally settled the case in which the company was accused of abusing its dominant position in search.

The tl;dr version of the dispute was that Google search results were giving undue prominence to its own services – such as Google News and Google Shopping – and freezing out rivals. Google was eventually given a deadline of 31st January last year to submit proposals on how it would resolve the problem … 
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The European Union’s long-running anti-trust case against Google, in which the search company was accused of using its dominant position in search to stifle competition, looks set to finally be resolved – though we may have to wait until Spring to learn the details.

Reuters reports that Google has made new proposals, which the EU suggests is likely to lead to a settlement.

Joaquin Almunia told lawmakers in the European Parliament he believed the new offer made it easier to see Google’s rivals when making an internet search.

“We have reached a key moment in this case,” Almunia said.

“Now with the significant improvements on the table I think we have the possibility to work again.

“If our investigation of this improved proposal is satisfactory then we will continue the commitments route and end up with a formal decision next spring,” he said, adding: “I think that the settlement route remains the best choice” … 
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Earlier this month we heard that Google had handed in a formal offer of concessions to the  European Union Competition Commissioner in the ongoing antirust investigation into whether some of Google’s practices with its search and ad businesses create unfair competition and abuse the company’s dominance. At the time we didn’t get to see what the settlement proposal actually included, but today the commission issued a press release asking for feedback on the proposed commitments and detailing some of the proposals Google submitted:

Google has made proposals to try to address the Commission’s four competition concerns. Interested parties can now submit their comments within one month. The Commission will take them into account in its analysis of Google’s commitment proposals. If the Commission concludes that they address its four competition concerns, it may decide to make them legally binding on Google.

Among the most interesting commitments submitted by Google: For 5 years Google has agreed to “label promoted links to its own specialised search services”, as well as allow websites the ability to opt out from having specific pieces of content indexed by Google. Google would also no longer require publishers to utilize online search advertisements through sourced only through it.

A breakdown of Google’s proposals is below and the full version of its commitments can be found on the DG Competition’s website here. 
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According to a report from Bloomberg (via AllThingsD), the U.S. Federal Trade Commission subpoenaed Apple as part of its antitrust investigation of Google. There are not many details currently, but the report claimed the FTC is interested in Apple’s agreement with the company to use Google as its primary default search engine on iOS devices.

The agency’s request for documents includes the agreements that made Google the preferred search engine on Apple’s mobile devices, said the people, who weren’t authorized to speak publicly and declined to be identified. Google rivals such as Microsoft Corp. (MSFT) have criticized these agreements as anticompetitive.

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Microsoft requested European Union antitrust regulators to probe Motorola Mobility on claims that the United States phone manufacturer is blocking sales of Windows and Xbox products.

“Earlier today, Microsoft filed a formal competition law complaint with the European Commission (EC) against Motorola Mobility and Google,” wrote Microsoft’s Vice President and Deputy General Counsel David Heiner in a blog post this morning. “We have taken this step because Motorola is attempting to block sales of Windows PCs, our Xbox game console and other products.”

Microsoft’s post, “Google: Please Don’t Kill Video on the Web,” lambasted Motorola Mobility for not making industry standard patents available on reasonable and fair terms, and for using those patents to block competitors from shipping products.

The industry apparently agreed many years ago to define common technical standards for everyone to use and build compatible Wi-Fi and video products. However, Heiner contended, Motorola is backtracking on its word and attempting to use standard patents for “killing video on the Web.”

More information is available below.

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Google chairman Eric Schmidt is set to face the European competition commission this week to address potential antirust issues concerning their dominant position in the search business, according to a report from The Guardian. The meeting will be held by the commission’s antitrust chief, Joaquin Almunia, following initial talks held in January stemming from complaints by several search companies including Microsoft’s own Ciao.

Almunia is expected to present Google with a 400-page “statement of objections” that documents the commission’s research regarding “allegations that Google Inc has abused a dominant position in online search, in violation of European Union rules”.

The antitrust investigation started as far back as November 30, 2010, after claims from several search related companies including 1PlusV, Euro-Cities, and German organizations representing publishers filed complaints. The complaints themselves range from Google displaying there own services in search results to unfairly using content from publishers.

If Google is found guilty of abusing its dominant position in the market they could face fines up to 10% of the company’s annual turnover in Europe, or be forced to make changes to the way it runs its search business in the region. While some reported that during initial negotiations in January Almunia told Schmidt he would have a chance to offer up a solution, Almunia had this to say late last week about the upcoming meeting:

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According to a report from WSJ, Google is currently in talks with private-equity firms regarding potentially providing assistance in the purchase of Yahoo Inc.

The report mentions the possibility Google is simply trying to bid up the purchase price to make it a less attractive deal for other potential buyers including Microsoft. Yahoo is currently in talks with Microsoft and private equity firm Silver Lake Partners as well as the Canada Pension Plan Investment Board regarding a possible deal. Although, there are reasons Google might find owning a piece of Yahoo’s 700 million plus unique monthly visitors beneficial.

The most obvious is advertising. According to the report, “Google wants to help sell the ad space across Yahoo sites as Yahoo has struggled to get good prices for it”. WSJ mentions the ability to push Google+ on the Yahoo community, but more importantly, a deal would provide Google with access to ads displayed in content from ABC News and other current premium content partners of Yahoo. According to the source, Google is interested in “having deeper business relationships with such publishers”.

Citing a “person familiar with the matter”, WSJ’s sources claim that Google has talked with two undisclosed private-equity firms, and while no deal has been struck, many are already discussing potential antitrust investigations. Forbes just published a story focusing on the antitrust issues of a potential Yahoo purchase, outlining the obvious predicament:

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