Google Antitrust Investigation

Topics: Google search, Web search engine, Cartel Pages: 2 (531 words) Published: February 9, 2014


Google’s Antitrust Investigation
Laura Rogers

Google’s Antitrust Investigation
Recently, Google, Inc. was under investigation for suspicion of violating U.S. Antitrust Laws. The investigation by the Federal Trade Commission (FTC) consisted of evaluating the company’s business practices related to patents on electronic devices and online search advertising (The Computer & Internet Lawyer, 2013). Google had acquired patents on applications from Motorola Mobility (MMI). These patents are necessary to ensure wireless connections and Internet activity for popular hand-held electronic or game consoles. The Allegations

The success of Google in the market is being scrutinized about legitimate business practices. The use of internet search engines, like Google, do not cost consumers to use the service. Pike reports that two-thirds of the U.S. population use Google services and about eighty percent worldwide. Most of the revenue received by Google is in the form of sponsored advertising (2011). According to The Computer & Internet Lawyer, the FTC alleged that Google’s business practices could influence the cost of devices that rely on the MMI technology (2013). For example, most android devices use Google products by default, which could be questioned that Google has influence over the makers of these devices. It has also been suggested that Google favors the search results of those that are ad sponsors (Pike, 2011). Guilty or Not-Guilty

The purpose of antitrust laws is to prevent monopolization provide structure for conduct (McConnell, Brue, Flynne, 2012). The Sherman Act of 1890 prohibited business monopolies and price fixing (p.375). Later in 1914, The Clayton Act elaborated more on the Sherman Act. This act outlaws price discrimination, prohibition of tying contracts, prohibits the purchase of stocks of competitors, and prohibits the formation of interlocking directorates (p.376). As Pike reports, antitrust laws are “to...

References: FTC settles with google in antitrust investigation. (2013). Computer and Internet Lawyer, 30(3), 27-28. Retrieved January 22, 2013 from http://search.proquest.com/docview/1326330516?accountid=44759
McDonnell, C., Brue, S., Flynn, S. (2012). Economics: principals, problems, and policies (19th ed.).Retrieved from http://online.vitalsource.com/books/0077587766
Pike, G. H. (2011). Google 's antitrust woes continue. Information Today, 28(9), 1-35. Retrieved January 21, 2013 from http://search.proquest.com/docview/897599203?accountid=44759
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