Subject: Bits Daily Update: Daily Report: Google Pushed Hard Behind the Scenes 
to Convince Regulators

 


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Friday, January 4, 2013 

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Daily Report


 
<http://p.nytimes.com/email/re?location=YFuu/A194QEKjxV/ugpm0k9anQA2MM49IhNWGFarU5HTBLRPG+5XIkaCg1tMG/GmvBhR56dDeUoSyiPxv3xjB3XLB9QW6Fz4cwBRXmnF8EDZjosmxn8K+R/C0DLwIFwVbFt+Klja74HaJU3qmhC27NhHwoWYRJLX/bSnxwHwGKlCc4UxMKraD5q269334f4ZImodAeAYxzc=&campaign_id=688&instance_id=24013&segment_id=42689&user_id=5f5a69e70bdbc8fbc53066c386be797f>
 Daily Report: Google Pushed Hard Behind the Scenes to Convince Regulators | 
For 19 months, Google pressed its case with antitrust regulators investigating 
the company. Working relentlessly behind the scenes, executives made frequent 
flights to Washington, laying out their legal arguments and shrewdly applying 
lessons learned from Microsoft's bruising antitrust battle in the 1990s, report 
 
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 Claire Cain Miller and Nick Wingfield of The New York Times.


That is why one of the biggest antitrust investigations of an American company 
in years ended with a slap on the wrist Thursday, when the Federal Trade 
Commission closed its investigation of Google's search practices without 
bringing a complaint. Google voluntarily made two minor concessions. 


Edward Wyatt of The New York Times reported  
<http://p.nytimes.com/email/re?location=4z5Q7LhI+KVBjmEgFdYACPLKh239P3pgj6SEawzOelQc1dSVHnWyzWIkTQTdJyhtWVxYVdHoZZ8DJawpI0Fkag4SiQvVRLaARddBR0MQS4D7UJi/E9deZbx+lr9+Ph9I+1Resf6gF1E9oOWPrSwKaXIpxSEXWqjmI17xthJXiMdn43COv529jbihb6H9UVmTI17xthJXiMdGVypokOY2BrBFYcOKAQo8X024F2/4+B0=&campaign_id=688&instance_id=24013&segment_id=42689&user_id=5f5a69e70bdbc8fbc53066c386be797f>
 that by allowing Google to continue to present search results that highlight 
its own services, the F.T.C. decision could enable Google to further strengthen 
its already dominant position on the Internet. It also enables Google to avoid 
a costly and lengthy legal war of attrition like the antitrust battle that 
Microsoft waged in the 1990s.


"The way they managed to escape it is through a barrage of not only political 
officials but also academics aligned against doing very much in this particular 
case," said Herbert Hovenkamp, a professor of antitrust law at the University 
of Iowa who has worked as a paid adviser to Google in the past. "The first sign 
of a bad antitrust case is lack of consumer harm, and there just was not any 
consumer harm emerging in this very long investigation." 


Elsewhere on the Web, FOSS Patents 
<http://p.nytimes.com/email/re?location=4z5Q7LhI+KV8iYym0d9XyYnZHkwzqpDQrm3eJZiIJmzEzHHy/ArNj/tcVt9u585tJzhwBxM31/65iSY3NP5H8JqWSSsrNSccdiHfYJp8eo4=&campaign_id=688&instance_id=24013&segment_id=42689&user_id=5f5a69e70bdbc8fbc53066c386be797f>
  focused on the part of the F.T.C.'s ruling regarding Google's standard 
essential patents. "In terms of impact on other cases, the order is a consent 
decree: Google accepted it as part of a broader settlement," wrote Florian 
Mueller. "Over the last couple of years I've been watching a certain pattern of 
companies making licensing offers on outrageous, totally unacceptable terms, 
knowing that no one in his right mind would accept them, only to then seek 
injunctive relief against an allegedly-unwilling licensee," he writes."The FTC 
undoubtedly wanted to put an end to these games." 


Politico reported  
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 that "instead of ignoring Washington - as rival Microsoft did before its 
costly monopolization trial in the 1990s - Google spent about $25 million in 
lobbying, made an effort to cozy up to the Obama administration and hired 
influential Republicans and former regulators. The company even consulted with 
the late Robert Bork and the Heritage Foundation and met with senators like 
John Kerry to make its case. In other words, these traditional outsiders worked 
the system from the inside."


GigOm said 
<http://p.nytimes.com/email/re?location=+VhK2vtOoltPbCVAnF1pTn2ag5FJyl5YnDLovOL19ZVR2NjPAJ0NHKeO/QbavRw5dD9RNIplMeWXKelLC3fv+EWkhgjH2e0g8S4U4s/TdTAaCNFdx7QZSw==&campaign_id=688&instance_id=24013&segment_id=42689&user_id=5f5a69e70bdbc8fbc53066c386be797f>
 , "The biggest loser is Microsoft, which funded a long-running 
cloak-and-dagger lobbying campaign to convince the public and government that 
its arch-enemy had to be regulated. Sites like Yelp, Kayak and Expedia also 
lose in the sense that Google can now push them down its search listing with 
impunity (though there is no sign for now that Google is actually doing this)."


The Washington Post said 
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  that the F.T.C. was not persuaded by the evidence at hand. "'The American 
antitrust laws protect competition, not competitors,' said Chairman Jon 
Leibowitz. Establishing whether consumers have suffered - or are likely to 
suffer in the future - has long been the quicksand in the middle of U.S. 
antitrust cases. Wait too long to rein in monopolists, and the damage might be 
irrevocable. Move too fast, and the evidence of consumer harm might lack the 
clarity necessary to survive a court challenge."


The Wall Street Journal focused 
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  on a stinging dissent from J. Thomas Rosch of the F.T.C.: "He didn't advocate 
suing Google, but said that in principle the FTC should require legally binding 
consent decrees if problems are found. 'After promising an elephant more than a 
year ago, the Commission instead has brought forth a couple of mice,' Mr. Rosch 
said."

 

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