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Competition Authorities and Search
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Government competition agencies are increasingly focused on Google’s growing power in search and online advertising. The U.S. Federal Trade Commission, the U.S. Department of Justice and the European Commission have all determined that Google is dominant in certain markets, including search advertising. In late 2008 the DOJ was prepared to go to court to block Google’s attempt to partner with its largest search rival, Yahoo!. Last year the DOJ told a federal court that Google’s book search plan is anticompetitive in several respects. (One big problem is that Google would help itself to essentially exclusive rights to tens of millions of books—effectively locking out everyone else.) Last week the DOJ reiterated that view in court, even after Google had an opportunity to address the DOJ’s concerns. This week came news that the European Commission is investigating various aspects of Google’s conduct, including claims of retaliation, exclusivity and manipulation of search results to disadvantage rivals. The European Commission is likely to treat these cases quite seriously, given that Google’s share of search and search advertising is north of 95% in many European countries.
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