Google target of antitrust probe by 50 state attorneys general
A group of 50 state attorneys general has commenced an antitrust probe into Google, examining whether the search giant is engaging in anti-competitive practices with regards to how it provides advertising services online.
Google CEO Sundar Pichai testifies in front of a U.S. congressional panel in 2018.
Initially reported on Wednesday as being in the works, the announcement has grown the number of attorneys general from more than 30 to 50, consisting of 48 states excluding Alabama and California, as well as representatives of Washington DC and Puerto Rico.
Revealed on Monday, the group is being headed up by Texas Attorney General Ken Paxton, reports Business Insider. While the investigation may spread to other high-competition areas of Google, the initial activity will center on advertising.
"This is a company that dominates all aspects of advertising on the internet and searching on the internet, as they dominate the buyer side, the seller side, the auction side, and even the video side with YouTube," claims Paxton. "This investigation is not a lawsuit. It is an investigation to determine the facts. Right now we're looking at advertising, but the facts will lead where the facts will lead."
Google has already been contacted by the group over the probe.
It is unclear what penalties Google could face if the investigation deems the search company has been anticompetitive, with District of Columbia attorney general Karl Racine saying it was too early to tell.
While only applying to the FTC and DOJ, the "Monopolization Deterrence Act" introduced to the Senate at the start of August hints at lawmakers being keen to levy harsher penalties against firms engaging in antitrust behavior. If passed, companies could face a fine as much as 15% of its US-based revenue, which as an example, would be in the region of $40 billion for Apple based on its 2018 revenue.
The coordinated investigation is the latest move by regulators and lawmakers to try and limit the amount of control major tech companies can have over the rest of the industry. The size and power of the firms has put Google, Apple, Facebook, and others in the firing line for similar probes by other regulators.
In July, it was revealed by the Justice Department it was opening up an antitrust review of Apple, Google, and others over platform ownership and competition. Meanwhile, the Federal Trade Commission has been operating its own antitrust efforts since February.
On Friday, Google parent company Alphabet confirmed it was the subject of a DOJ antitrust investigation.
Google CEO Sundar Pichai testifies in front of a U.S. congressional panel in 2018.
Initially reported on Wednesday as being in the works, the announcement has grown the number of attorneys general from more than 30 to 50, consisting of 48 states excluding Alabama and California, as well as representatives of Washington DC and Puerto Rico.
Revealed on Monday, the group is being headed up by Texas Attorney General Ken Paxton, reports Business Insider. While the investigation may spread to other high-competition areas of Google, the initial activity will center on advertising.
"This is a company that dominates all aspects of advertising on the internet and searching on the internet, as they dominate the buyer side, the seller side, the auction side, and even the video side with YouTube," claims Paxton. "This investigation is not a lawsuit. It is an investigation to determine the facts. Right now we're looking at advertising, but the facts will lead where the facts will lead."
Google has already been contacted by the group over the probe.
It is unclear what penalties Google could face if the investigation deems the search company has been anticompetitive, with District of Columbia attorney general Karl Racine saying it was too early to tell.
While only applying to the FTC and DOJ, the "Monopolization Deterrence Act" introduced to the Senate at the start of August hints at lawmakers being keen to levy harsher penalties against firms engaging in antitrust behavior. If passed, companies could face a fine as much as 15% of its US-based revenue, which as an example, would be in the region of $40 billion for Apple based on its 2018 revenue.
The coordinated investigation is the latest move by regulators and lawmakers to try and limit the amount of control major tech companies can have over the rest of the industry. The size and power of the firms has put Google, Apple, Facebook, and others in the firing line for similar probes by other regulators.
In July, it was revealed by the Justice Department it was opening up an antitrust review of Apple, Google, and others over platform ownership and competition. Meanwhile, the Federal Trade Commission has been operating its own antitrust efforts since February.
On Friday, Google parent company Alphabet confirmed it was the subject of a DOJ antitrust investigation.
Comments
I would hope that when the focus turns to Apple, and it will, all evidence and context will come to the fore so that a balanced picture emerges.
There was a Judicial decision to do so but MS appealed it.
"The DOJ announced on September 6, 2001 that it was no longer seeking to break up Microsoft and would instead seek a lesser antitrust penalty. Microsoft decided to draft a settlement proposal allowing PC manufacturers to adopt non-Microsoft software,"
That being the case, Apple wasn't in fact the "biggest winner" from the M$ breakup, because the breakup never happened. Apple did benefit from negotiations with MS that included support for Office for a period of five years, and a token investment of $150 M, which ended up being a very good investment for MS.
There’s no reason anyone would suffer if Google was split up. All of their products are basically disparate products already as they’re readily available across multiple platforms and devices...i.e. Google services exist outside of Android and Chrome. And Android and Chrome are available outside of Google devices.
I'm very glad you are using DuckDuckGo. They rock.
You should admit that you were wrong and move on.
I just don’t get how they walked away with a slap on the wrist.
Personally, I would be content if Alphabet would change their search algorithms to minimize “paranoid rabbit-holing” and recommit to customer privacy.
But I am sure advertisers and content creators may have a different perspective.