What Is Google's Antitrust Investigation
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 …show more content…
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 protect consumers by ensuring that market choice remain available” (2011). Has Google violated these laws? Dominating a market does not necessarily equal a monopoly. While there are other companies in the market, such as Bing and Yahoo!, Google seems to be the most popular. What makes a monopoly illegal is when it was created through unfair behavior with the “power to control prices and exclude competition” (Pike, 2011). If the allegations of having control over Google products with the android market prove true, then Google would be guilty of The Clayton
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 …show more content…
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 protect consumers by ensuring that market choice remain available” (2011). Has Google violated these laws? Dominating a market does not necessarily equal a monopoly. While there are other companies in the market, such as Bing and Yahoo!, Google seems to be the most popular. What makes a monopoly illegal is when it was created through unfair behavior with the “power to control prices and exclude competition” (Pike, 2011). If the allegations of having control over Google products with the android market prove true, then Google would be guilty of The Clayton