Articles about Google vs the Feds

During a press conference early this afternoon, the Federal Trade Commission announced a sweeping settlement with Google that ends an ongoing antitrust investigation. But Google's legal woes aren't over. The European Union has set an imminent deadline for settlement there that otherwise will lead to sanctions. Still, on these shores, the search and information giant got a big pass today that is sure to send competitors howling (as some, Microsoft among them, did before today's agreement).

FTC Chairman Jon Leibowitz announced the settlement from the agency's Washington, D.C. headquarters. He describes the nearly 20-month investigation as "exhaustive", collecting "nine million pages of documents". The big claim against Google: That the company favors its own services over others -- so called "search bias". Leibowitz says the investigation "does not support a claim" and commissioners voted unanimously to close it. That said, Google agreed to stop scraping content from partners, such as Yelp, and to end contractual obligations that impede small businesses.

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Apple may find itself on the precipice of an antitrust lawsuit over its handling of ebooks, but on the flipside is quickly becoming a key witness in the US Government's continuing investigation into Google's business practices. The Federal Trade Commission has asked the Cupertino, Calif. company to detail Google's integration into iOS.

Google has been the default search engine for the iPhone since its debut in 2007, and on the iPad since 2010. While consumers do have the option to change the setting to Yahoo or Microsoft's Bing, from the factory it's all Google. Google Maps also is the basis for iOS' navigation functionality, with no other options provided.

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Contrary to testimony given before the US Senate yesterday, Google has not learned lessons from Microsoft's antitrust case -- not enough of them, or the right ones. More importantly, Google is looking at the wrong company. It is Intel's dealing with the Feds that could help Google navigate the shark-infested regulatory waters before it.

If the company fails to respond, and quickly, regulators will step in. Google can only avoid being eaten by way of contrition and compromise, and Executive Chairman Eric Schmidt didn't signal enough of either during his prepared statement or responding to questions that followed.

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Google's Executive Chairman Eric Schmidt on Wednesday testified before the U.S. Senate in a hearing called "The Power of Google: Serving Consumers or Threatening Competition?". The Senate Judiciary subcommittee on Antitrust, Competition Policy and Consumer Rights sought to determine the impact Google's dominance (considered by some to be a natural monopoly) is having on competition.

Schmidt's oral testimony is embedded here.

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Google's executive chairman began his testimony before the US Senate by citing, unnamed, Microsoft and its dominance in the PC industry and how trustbusters stepped in to correct a company that had lost its way. "We get it", Eric Schmidt said. "We get the lessons of our predecessor". Schmidt testified before the Senate's antitrust subcommittee.

Before Schmidt spoke, Sen. Mike Lee, R-UT, put forth that Google had become kind of a gatekeeper to the Internet, holding the fate of other companies by how they rank in searches. "The open Internet is the ultimate playing field", Schmidt answered during his opening remarks. "We don't trap our users".

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Last week the Department of Justice announced the conclusion of its investigation of Google permitting online Canadian pharmacies to place advertisements through AdWords, facilitating the unlawful importation of controlled pharmaceuticals into the United States. Google's large forfeiture -- fully $500 million -- reveals the gravity of the offense, and as part of the settlement, Google affirmatively admits liability.

These admissions and the associated documents confirm what I had long suspected: Not only does Google often ignore its stated "policies", but in fact Google staff affirmatively assist supposed "rule-breakers" when Google finds it profitable to do so.

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