Google Has Been Judged

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The decision was handed out yesterday from the FTC with Google versus everyone else basically, and while some people were happy with the decision, others obviously were not. In case you’ve missed any of the news surrounding the case, the very basic gist of what the complaint was that Google was controlling their monopoly of online search and marketing using anti-competitive practices.

There were a couple of good points made in the ruling, the main point being that a monopoly in a given market is not, by itself, illegal. In order to make a monopoly illegal, you need to gain, or maintain that hold using anti-competitive practices. This has been a long ongoing case in which the FTC poured over 9 million pages of documents after the charges were initially laid. And after all of that work, all of the discussions and meetings – Google has not violated any U.S. antitrust law.

googleisIt’s no real surprise that Google would be the target of such a case, they’re supremely dominant in the search industry. The Mountain View based giant accounted for 74.5% of all U.S. search advertising revenues in 2012. Microsoft on the other hand took in a significantly smaller share at 8% in the past year. The argument has long been that Google has been demoting or removing it’s rivals in their results pages in order to drive users to their own properties. And yet, after an investigation that nearly lasted for two years, and after what FTC Chairman Jon Leibowitz described as “an incredibly thorough and careful investigation,” the FTC concluded unanimously that the evidence was lacking to charge Google.

While Google is going to make some changes in the way they do business, they’ve been cleared of any wrong doing where search is concerned, as it turns out they’re just better at it than the other options. From Ryan Radia, associate director of technology studies at the Competitive Enterprise Institute:

America’s antitrust laws are designed not to punish companies for growing too big or too unpopular, but to ensure no company stifles competition itself… The thriving Internet sector — a bright spot in America’s otherwise lackluster economy — shows no signs of suffering from too little competition.